Giant Yellowknife to mine reserves of Hoyle property

Falconbridge’s property lies adjacent to Giant Yellowknife’s Pamour No 1 mine at Timmins, Ont.

Proven and probable reserves at the property reportedly total 2.4 million tons grading 0.087 oz gold per ton. Reserves of all classes are estimated to be eight million tons averaging 0.08 oz.

Giant Yellowknife says preliminary studies indicate production will begin at a rate of 20,000 tons per month. Access to the property will be through the Pamour No 1 mine.

At an initial grade of 0.085 oz, this ore will displace lower grade material being mined from Pamour No 1 in about eight months. Development costs are estimated to be $3 million.

Giant Yellowknife also obtained from Falconbridge Gold the right to earn a 51% interest in any gold reserves outlined on a contiguous property by spending $2 million on exploration work within five years.

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