A BREAKNECK PACE Dumagami

For Dumagami Mines’ gold property near Cadillac, Que., two key drill holes finally put to rest any question that this property had the potential to become a producer. The first hole, at a vertical depth of 2,650 ft and put down near the western boundary of the play, ran 0.23 oz gold per ton across a true width of 59.1 ft. The second, slightly shallower hole cut 0.24 oz gold per ton across 34.5 ft.

Those two holes and subsequent drilling have put reserves at a relatively comfortable 5.5 million tons grading an average 0.134 oz per ton. In spite of the higher-grade reserves in this West zone, initial production is planned from above the 10th level. Of course, drives are being pushed west on the deepest 20th and 21st levels. The West zone has been traced from above the 600 level to a depth of 3,400 ft — a vertical extent of nearly half a mile and still open. Developed areas in the lower-grade East zone, which is nearest the surface, run as high as 0.15 oz gold per ton.

On surface, a 2,000-ton-per-day concentrator is being assembled. Copper will also be extracted from the ore. (Of that 2,000-ton capacity, about 500 tons have been allotted to ore from Goldex Mines’ Dubuisson Twp. property. Goldex is a related company in that both it and Dumagami are controlled by Agnico-Eagle Mines.)

It should be noted that, at the time of writing, ownership of Dumagami Mines was under dispute. Noranda Inc. had sold a 1.4-million-share stake in Dumagami in early 1986. It has filed a lawsuit alleging that it hadn’t been properly informed of the Dumagami property’s potential. Agnico- Eagle, which bought the Noranda interest in Dumagami, has filed a statement of defence. Dumagami Notebook Location: ……. Cadillac, Que. Major owners: ……. Dumagami Mines Commodities: ……. gold, silver, and copper Discovery date: ……. unavailable Production decision: ……. August, 1986 Start-up: ……. July, 1988 Capital costs: ……. $32 million Operating costs: ……. $36 per ton (estimated) Reserves: ……. 5,478,040 tons of 0.134 oz gold per ton Means of access: ……. 3,200-ft shaft Extent of vertical workings: ……. 3,000 ft Mining method: ……. sub-level retreat Mining equipment: ……. track Production rate: ……. 1,500 tons per day Milling plans: ……. on-site 2,000 tons per day (500 tons of capacity to

process Goldex ore) Major contractors: ……. Pamo Construction, Leslie Engineering Status: ……. pre-production