Gold production from Pioneer Metals Corp.’s new Puffy Lake mine, near Flin Flon, Man., was scheduled to reach 75% of design capacity by the end of 1987. By the end of this year, the $18-million underground mine should be pouring the yellow metal at an annual rate of 72,000 oz. Mine life now stands at about seven years. Discovered in 1979 by Maverick Mountain and Granges Exploration (Granges retains a 20% net profit interest), the Puffy Lake deposit has 2.5 million tons of probable and possible ore grading 0.233 oz gold per ton. Milling 1,000 tons of this material per day is sufficient to meet annual production targets.
The gold occurs in at least four parallel zones of multiple-quartz vein systems. The zones are of variable extent, according to Stewart Blusson, vice-president, exploration. They average about 6.5 ft in thickness and occur tens of feet apart. Vein structures are continuous but variable in thickness, ranging from 0.65 ft to 34.8 ft.
The mineralization of the gold- bearing structure consists primarily of 40% to 80% quartz, along with disseminated pyrite, arsenopyrite and pyrrhotite with lesser amounts of galena, sphalerite and chalcopyrite. Some native gold has been identified in the core and in the underground workings.
To date, some 5,000 ft of underground workings have been driven by Canadian Mine Development of Brampton, Ont., to open up production stopes. A modified room-and- pillar method has been chosen, using jackleg and slushers. Drill jumbos, scooptrams and 15- and 24-ton trucks are being used for development work by the contractor. Access to the mine is provided through a decline ramp driven at –15 degrees.
The mill, designed to treat 1,000 tons per day, will recover about 75% of the gold in a gravity concentrate and a further 18.9% in a flotation concentrate. Over-all recoveries should be 93.9%. Not having to deal with the problem of cyanide has kept capital costs down. Puffy Lake Notebook Location: ……. 7 1/2 miles southeast of Sherridon, Man. Major owner: ……. Pioneer Metals Corp., 20% net profit interest to Granges Exploration. Discovery date: ……. 1979 Production decision: ……. Jan 19, 1987 Capital cost: ……. $18 million, including underground development Operating costs: ……. $200(US) per oz Reserves: ……. 2.5 million tons at 0.233 oz gold per ton Means of access: ……. decline Mining method: ……. modified room-and-pillar Production rate: ……. 1,000 tons per day Milling: ……. 72,000 oz per year Major contractors: ……. Proton Systems, Canadian Mine Development Status: ……. production
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