Breakwater’s efforts at Estrades typical of challenges facing (June 18, 1990)

The approach road to the Estrades project site, floating as it does in the midst of a swamp, gives some indication of the unique difficulties Breakwater Resources (TSE) has to overcome in preparation for production. Despite the hurdles, Breakwater is confident that its polymetallic orebody on the Casa Berardi fault zone near Joutel, Que., will be generating revenue by August this year. Breakwater scooped more than 100,000 cubic metres of overburden from the mine site while the ground was still frozen. Now the company is blasting a 4-km-long ramp into the depths of the massive sulphide ore zone. Over the next 5.4 years, the high-grade deposit is expected to produce 941,400 tonnes of ore grading 5.59 grams gold per tonne (0.16 oz. gold per ton), 182 grams silver, 0.94% copper, 0.92% lead and 10.7% zinc.

Based on a 25-metre drill spacing geologists on the site describe these reserves as “highly probable.” And, if an underground exploratory advance planned for the Central zone to the east is fruitful, an additional 462,900 tonnes may be mined.

Although Breakwater has not yet decided which mining method it will use, the company expects to drift out from the ramp at 10- to 20-metre intervals. Previous drilling indicates that the sub-vertical to vertical ore zone extends to about 600 metres, said mine manager Daniel Gignac, and a “high-grade plum” caps the zone to a depth of 200 metres. Unfortunately, to allow for a crown pillar on top of the mine, Breakwater will need to leave 15 metres of the richest ore untouched, at least until underground production is complete.

Breakwater will spend an estimated $15 million developing the deposit, said Gignac. A good portion of the cost is directly related of the problems associated with development in a swamp. Gignac calculated that about $1.5 million was put towards building a 15-km “floating” road into the camp, and another $600,000 financed the excavation of “several football fields” of overburden around the ramp site.

But the company will save almost as much as it spends by having the Estrades ore custom milled by Noranda (TSE) in Matagami, Que., Gignac told The Northern Miner during a recent visit to the site. The milling arrangement “is basically what made this project a go,” he said. Breakwater plans to forgo a bulk sample and will instead opt for immediate recovery from the first load of ore.

The Estrades discovery dates back to 1985, when a weak but continuous geophysical conductor running across the property alerted joint venture partners Golden Hope Resources (COATS) and Golden Group Explorations (VSE) to the possibility of a metallic deposit beneath the previously unexplored bog. To earn a 50% back-in interest in the project, Teck (TSE) began a drill program, and on the first hole, intersected seven metres of high- grade mineralization. This discovery led to detailed drilling and a production decision at the beginning of this year.

Breakwater earned its direct interest in the property after Teck pulled out of the project last spring. Once commercial production begins, Breakwater will hold a 70% interest, while Golden Group and Golden Hope will retain 18% and 12% respectively.

Although the bedded, fragmented massive sulphide orebody at Estrades shows similarities with other volcanogenic deposits in the area, it is also unique in many respects. “This is a dog of a different color,” said mine geologist Michael Welch. While most of the deposits occur on the contact between mafic and felsic volcanics, the Estrades body is enclosed within an entirely felsic band, he explained. And while it is typical to find copper enrichment in the centres of volcanogenic massive sulphides, the Estrades zone shows a unique zinc-gold enrichment at its centre.

With the objective of increasing reserves, Breakwater has obtained an option to acquire up to a 60% interest in the Argentex property, 200 ft. north of the Main zone at Estrades, from Greater Lenora Resources (TSE). Company geologists believe that the 61 claim property may contain mineralization similar to the Estrades, and will embark on a geophysics and drilling program some time this year.

The approach road to the Estrades project site, floating as it does in the midst of a swamp, gives some indication of the unique difficulties Breakwater Resources (TSE) has to overcome in preparation for production. Despite the hurdles, Breakwater is confident that its polymetallic orebody on the Casa Berardi fault zone near Joutel, Que., will be generating revenue by August this year. Breakwater scooped more than 100,000 cubic metres of overburden from the mine site while the ground was still frozen. Now the company is blasting a 4-km-long ramp into the depths of the massive sulphide ore zone. Over the next 5.4 years, the high-grade deposit is expected to produce 941,400 tonnes of ore grading 5.59 grams gold per tonne (0.16 oz. gold per ton), 182 grams silver, 0.94% copper, 0.92% lead and 10.7% zinc.

Based on a 25-metre drill spacing geologists on the site describe these reserves as “highly probable.” And, if an underground exploratory advance planned for the Central zone to the east is fruitful, an additional 462,900 tonnes may be mined.

Although Breakwater has not yet decided which mining method it will use, the company expects to drift out from the ramp at 10- to 20-metre intervals. Previous drilling indicates that the sub-vertical to vertical ore zone extends to about 600 metres, said mine manager Daniel Gignac, and a “high-grade plum” caps the zone to a depth of 200 metres. Unfortunately, to allow for a crown pillar on top of the mine, Breakwater will need to leave 15 metres of the richest ore untouched, at least until underground production is complete.

Breakwater will spend an estimated $15 million developing the deposit, said Gignac. A good portion of the cost is directly related of the problems associated with development in a swamp. Gignac calculated that about $1.5 million was put towards building a 15-km “floating” road into the camp, and another $600,000 financed the excavation of “several football fields” of overburden around the ramp site.

But the company will save almost as much as it spends by having the Estrades ore custom milled by Noranda (TSE) in Matagami, Que., Gignac told The Northern Miner during a recent visit to the site. The milling arrangement “is basically what made this project a go,” he said. Breakwater plans to forgo a bulk sample and will instead opt for immediate recovery from the first load of ore.

The Estrades discovery dates back to 1985, when a weak but continuous geophysical conductor running across the property alerted joint venture partners Golden Hope Resources (COATS) and Golden Group Explorations (VSE) to the possibility of a metallic deposit beneath the previously unexplored bog. To earn a 50% back-in interest in the project, Teck (TSE) began a drill program, and on the first hole, intersected seven metres of high- grade mineralization. This discovery led to detailed drilling and a production decision at the beginning of this year.

Breakwater earned its direct interest in the property after Teck pulled out of the project last spring. Once commercial production begins, Breakwater will hold a 70% interest, while Golden Group and Golden Hope will retain 18% and 12% respectively.

Although the bedded, fragmented massive sulphide orebody at Estrades shows similarities with other volcanogenic deposits in the area, it is also unique in many respects. “This is a dog of a different color,” said mine geologist Michael Welch. While most of the deposits occur on the contact between mafic and felsic volcanics, the Estrades body is enclosed within an entirely felsic band, he explained. And while it is typical to find copper enrichment in the centres of volcanogenic massive sulphides, the Estrades zone shows a unique zinc-gold enrichment at its centre.

With the objective of increasing reserves, Breakwater has obtained an option to acquire up to a 60% interest in the Argentex property, 200 ft. north of the Main zone at Estrades, from Greater Lenora Resources (TSE). Company geologists believe that the 61 claim property may contain mineralization similar to the Estrades, and will embark on a geophysics and drilling program some time this year.