A BREAKNECK PACE Golden Rose

At the turn of the century, gold nuggets were found on the shore of a lake 60 miles northwest of North Bay, Ont. Four decades passed before anyone formally mined the deposit. That operation, known as the New Golden Rose, yielded 43,359 oz of gold and a relatively small amount of silver. It was shut down in 1941. Another 40 years went by before the Golden Rose again attracted attention. This time a newly-minted company, Emerald Lake Resources, was formed to raise the dollars for exploration. The sweet scent of economic ore wafted from the drill cores soon thereafter.

In mid-1984, a 7,000-ft drill program at a cost of $220,000 turned up gold mineralization in all but two of the 25 holes collared. By early 1985, Emerald Lake President Gordon Keevil was publicly stating that a mineable deposit was a near certainty. Two years later it was a reality.

The Golden Rose yielded its most recent gold in September, 1987. And company officials expect that, this time, the mine will have staying power. Reserves in the proven and probable categories stand at roughly 650,000 tons grading about 0.20 oz gold per ton. Another 1.8 million tons grading 0.247 oz per ton have been defined as possible.

Production costs should come in at $220 for each ounce of gold produced. The shallow depth of the deposit is the main reason costs are relatively low. The bulk of the reserves are above the 4th level, or 450 ft. A decline ramp and four developed levels provide access to the ore. Although average grades in the zones now being mined run at about 0.23 oz per oz, much higher grades lie within mineralized zones.

The company plans to blend the grades to yield 0.3 oz at the millhead. Relatively extensive mining widths are available as well, and the gold, which occurs in the free state, is associated with intense sulphide alteration. Golden Rose Notebook Location: ……. 60 miles northwest of North Bay, Ont. Owners: ……. Emerald Lake Resources (100% working interest), Teck Corp. (2.5% net smelter return) and Highland Crow Resources (3.5% net smelter return) Discovery Date: ……. 1897 Production decision: ……. July 15, 1987 Start-up: ……. Sept 15, 1987 Capital costs: ……. $13 million Operating costs: ……. $65 per ton Reserves: ……. 377,000 tons of 0.225 oz gold per ton (proven); 286,300 tons of 0.186 oz (probable); 1.8 million tons of 0.247 oz (possible) Means of access: ……. 11×14-ft ramp Extent of vertical workings: ……. unavailable Production rate: ……. 400 tons per day Milling plans: ……. on-site Major contractors: ……. Stay Sales, Pacific West Industries Status: ……. production