The High Grade zone at the Red Lake gold mine, in northwestern Ontario, continues to exceed grade expectations.
To date,
Processing will begin shortly, followed by the first gold pour in early August.
Goldcorp is focusing on levels 32 and 34 and expects to achieve the desired mining rate of 600 tons per day by mid-November. Prior to 1996, when a labour dispute shut down the mine, production was focused above Level 30, in what is referred to as the Sulphide zone. The labour dispute was recently settled.
Meanwhile, 138 new holes have been sunk in the High Grade zone, three-quarters of which were for definition and delineation purposes. Three holes of the latter group returned exceptional values of 68.02 oz. over 9 ft., 44.65 oz. over 8.4 ft. and 8.86 oz. over 34.5 ft.
The remaining 25% of the holes focused on five underexplored areas, intersecting gold-bearing structures at each. Drilling in these areas continues.
At full production, Red Lake is to produce 240,00 oz. gold annually at a cash cost of US$88 per oz., or a total after-tax cost of US$213 per oz. Plans call for 64,000 oz. to be produced this year from preproduction development.
Reserves in the High Grade zone are pegged at 1.4 million tons grading 1.37 oz. per ton, sufficient for 6.5 years of production. The estimate, calculated by Watts Griffis & McOuat, is based on a gold price of US$300 per oz., 22% external dilution and the cutting of higher grades to 10, 5 or 2 oz.
The Sulphide zone contains an additional 1.4 million tons grading 0.36 oz., though, unlike the High Grade zone, mineralization in this zone is refractory in nature. Goldcorp plans to resume mining in that zone at a later date.
Meanwhile, exploration crews have discovered palladium-nickel mineralization on a 15-sq. mile property 21 miles west of the mine. Grab samples returned up to 0.21 oz. palladium and 7.08% nickel, plus platinum and copper values.
Exploration continues.
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