Perron pours first gold bar

The first gold bar was poured May 18 from the gold-silver Sleeping Giant mine of Perron Gold Mines (ME).

The mine is located near Amos in northwestern Quebec. Perron, part of the Hughes-Lang group, is projecting initial gold production of 2,500 oz per month, rising to 4,000 oz by the end of 1988.

Capacity of the Sleeping Giant mill is 900 tons per per day, which will be reached through a combination of stope muck and development stock. Plans call for an initial feed of 300 tons per day from stope muck, increasing to 650 tons by the end of this year. Development stock totals about 80,000 tons.

Current reserves stand at 1.8 million tons averaging 0.22 oz gold per ton, calculated to a depth of 800 ft. The shaft currently reaches 1,600 ft in depth, and during the next eight-to-12 months three new levels will be constructed below 800 ft.

Perron is currently mining the A and H zones, where the company anticipates an average grade of 0.21 oz.

Another Hughes-Lang company, D’Or Val Mines (TSE), last year put its gold property near Val d’Or, Que., into production, an operation that has been plagued by dilution problems.

The two companies have common management and being proposed is an amalgamation, subject to regulatory and shareholder approval, of Perron and D’Or Val.