1996: A LOOK BACK — More juniors join ranks of gold producers in 1996

Three junior mining companies opened gold mines in North America last year, and, while admittedly modest, the operations will set a substantial profit for their proprietors.

In the Wawa area of northern Ontario, River Gold Mines (RIV-T) opened the small, high-grade Eagle River gold mine. The Magnacon mill — an existing facility 17 km away from the mine — was leased, and then purchased, by River Gold to process Eagle River ore.

Gold was first poured in October 1995, just 18 months after River Gold acquired the property; the official opening was held the following June.

Eagle River was targeted to produce 50,000 oz. gold in 1996. Proven, probable and possible reserves stand at 1.05 million tonnes grading 12.67 grams gold per tonne. The proven and probable material is sufficient to sustain the mine for five years, based on current gold prices.

Geomaque Explorations (GEO-T) opened the San Francisco gold mine in Mexico’s Sonora state.

Mining there is carried out by open-pit methods, with reserves from four pit areas, at a daily mining rate of 5,500 tonnes. The stripping ratio is 2.8-to-1. Production for 1996 is expected to exceed 40,000 oz.

In September, Geomaque reported that proven and probable reserves were 24.5 million tonnes grading 0.92 gram gold per tonne. Total gold resources stood at 53 million tonnes containing 1.4 million oz. gold, with an additional 1 million tonnes of inferred pit material containing about 30,000 oz.

Production from surface oxide ores got under way at the Mt. Nansen project of BYG Resources (BYG-T). The project, near Carmacks, Y.T., will exploit a series of vein-type gold and silver deposits. Reserves in all categories total 1.1 million tonnes grading 7.6 grams gold and 167 grams silver per tonne.

The new mine has a 700-tonne-per-day mill with a cyanide circuit that is expected to overcome the metallurgical problems that forced the old Mt.

Nansen Mines operation to close in 1969.

Production is expected to reach 700 tonnes per day; long-term plans call for an expansion to 2,000 tonnes per day.

Barrick Gold (ABX-N) opened the Meikle mine, the largest underground gold mine in the U.S. The company spent US$180 million on construction and development, including a 1,480-ft.-deep production shaft and a 1,320-ft.

ventilation shaft. The Meikle is expected to process 2,000 tons per day, from which, on a yearly basis, 400,000 oz. gold will be extracted. Operating costs are estimated at US$125 per oz. The chief mining method employed is long-hole open-stoping, though, for less competent rock, underhand drift-and-fill methods will be used. Reserves stand at 9.7 million tons grading 0.68 oz.

gold.

Meanwhile, on the base-metal front, Cambior (CBJ-T) opened the Gonzague Langlois zinc mine last year near Lebel-sure-Quevillon, Que., only to close it several months later.

The temporary closure was a attributed to weak zinc prices and the need to modify the mining method in some parts of the deposit. The company expects to restart the mine later this year, provided market conditions are favorable.

The Gaspe Mines division of Noranda (NOR-T) is investing in its future by introducing solvent extraction-electrowinning (SX-EW) and modifying its smelting operation. Copper cathode is being produced at the new SX-EW pilot plant as part of a $4.9-million feasibility study. The oxide ore is from the open-pit Copper Mountain mine, where about 20 million tonnes grading 0.44% copper are available for leaching.