Overseas Platinum active in Ecuador (October 26, 1987)

Overseas Platinum has signed an agreement with an Ecuadorian company for the exploration of a gold-platinum placer property in northwestern Ecuador. Prior to closing the deal, Overseas Platinum panned several sections of the placer property. One pan yielded more than 20 g of gold and 20 g of platinum.

The precious metals are associated with beach and estuary black sands and the mouth of the Rio Santiago, a major river in the area. Although the pan results are termed qualitative, they do suggest that the property hosts considerable potential for gold and platinum reserves, the company concludes.

O Newfoundland Premier Brian Peckford has poured the first production gold bar at the Hope Brook Gold mine, on the province’s southwest coast. The ceremony marked the start-up of the first phase of mine development — a 1,760-ton-per-day open pit mining and heap leaching operation. During the 17-month life of this phase, it is expected some 75,000 oz of gold will be produced.

Development of the 3,300-ton- per-day underground mine and construction of the conventional gold mill is in progress. These facilities are scheduled to begin production in the last quarter of 1988. During their 10-year life, an annual average of 126,000 oz of gold will be produced.

Development of the remotely located mine has been a challenge. There is no overland access to the site, and almost all personnel, equipment and material is transported by sea, mostly by the company’s leased vessel, the Couteau Supplier.

In full production, the mine will provide 245 jobs at the site and 25 more at the administrative centre in Corner Brook, on the west coast.

Hope Brook Gold, a subsidiary of BP Selco, is traded on the Toronto Stock Exchange and on the Montreal Exchange.