Catear’s Goldwedge property slated for production late ’88

Calgary-based Catear Resources is aiming for full production late in 1988 at its Gold- wedge property, 35 miles northeast of Stewart, B.C. Work has started on a 120-ton mill. Building construction is almost completed and mill and electrical equipment will be installed by the end of March. Flotation cells are to be airlifted and operational in June, President E. Kruchkowski reports.

Plans call for milling an intial bulk sample of 10,000 tons, followed by another 37,000 tons this summer. The company has started negotiations with government regarding full-scale production at a rate of 250 tons per day starting in November.

A 1,200-ft underground decline and drifting is currently in progress. So far, the decline has been driven 358 ft. and is expected to intersect the Golden Rocket vein shortly. An underground and surface drilling program will commence in July to delineate additional ore reserves.

Four zones have been identified on the property, but only the Golden Rocket vein has been extensively drilled. A total of 16,100 ft in 58 holes has been drilled to date, tracing the vein along a strike length of 500 ft and a width of 20 ft. It remains open at depth and along strike.

Drill-indicated reserves are 146,437 tons grading 0.837 oz gold and 2.56 oz silver per ton.

After mining and milling the bulk sample, Catear plans an 8- month operating period to process 37,731 tons grading 0.664 oz gold and 4.0 oz silver per ton. Based on a 96.7% recovery, costs are calculated at $302 per oz gold. Once overland access is achieved in June, costs will be reduced to $246 per oz.

Based on a gold price of $600(C), the company estimates payback of capital costs of approximately $4 million will take five months.