A 3-party agreement virtually assures that the Silidor gold deposit within the city limits of Rouyn- Noranda in northwestern Quebec will go into production.
Noranda, Cambior and Cogesco Mining Resources have pooled their interests in the deposit in order to form a “unitized development area” encompassing the deposit in Beauchastel Twp. The deposit had been split between what were known as the Ribago property and the Waite Beauchastel property.
All three companies say the deposit is at the top of their list of exploration projects.
A $21-million underground exploration budget has been allocated by the three companies for the 260-acre property shared on the same basis as their joint venture interests — 55% to Noranda, 25% to Cambior and 20% to Cogesco.
With a reserve tonnage estimated at 4.8 million tons grading 0.187 oz gold per ton to a vertical depth of 2,300 ft, it seems likely the property will eventually produce gold. At 1,200 tons per day, a production rate that appears likely, the deposit could turn out more than 75,000 oz of gold a year.
Included in the new exploration program is a 1,400-ft, 4-compartment exploration shaft as well as drilling and bulk sampling. Noranda is operator of the project which will run until March, 1989.
Prior to this agreement, the Waite Beauchastel property was 100% owned by Noranda. The Ribago property had been 41%-owned by Noranda with Cambior holding 34% and Cogesco 25%.
Surface drilling will continue to outline the deposit which has not been fully delineated.
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