Construction could begin by next May on an open-pit gold and silver mine, 45 miles west of Bathurst, N.B. The federal government has kicked in $5.4 million in the form of loan insurance to help cover the low capital costs of the project, which could be in production by the third quarter of this year.
The gossan-type precious metals deposit was discovered in 1953. Using vat leaching technology, Northumberland plans to mine the deposit at a rate of 1,000 tons per day at a cost of about $9.95 per ton.
Kennco Explorations retains a 2 1/2 % net smelter return from the property. Contractors for the project have not been selected. Kilborn Engineering of Toronto did the feasibility study. This will be the first producing mine for Northumberland, which has two other promising properties: one at Cochrane Hill and one at Goldenville, both in Nova Scotia. Murray Brook Notebook Location: ……. Restigouche County, N.B. Major owner: ……. Northumberland Mines Commodities: ……. gold and silver Discovery date: ……. 1953 Production decision: ……. 1986 Start-up: ……. last quarter, 1988 Capital cost: ……. $5.4 million Operating cost: ……. $9.95 per ton Reserves: ……. 1.7 million tons at 0.037 oz gold and 1.49 oz silver per ton Mining method: ……. open pit Production rate: ……. 1,000 tons per day Milling: ……. on-site vat leaching Major contractors: ……. not yet selected Status: ……….. pre-production
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