Akaitcho still benefitting from Supercrest operation

With only about 80,000 tons remaining in two deposits, the Supercrest gold mine couldn’t be described as one of the Northwest Territories’ larger operations.

A joint venture project involving Akaitcho Yellowknife Gold Mines (TSE) (49.9%) and Giant Yellowknife Mines (TSE), (50.1%) it produced only 1,413 oz of the yellow metal last year, up slightly from 1986 levels.

But the mine is showing a profit and the joint venture partners say reserves in a small satellite zone (GKP zone) are sufficient to support a mining operation for the rest of this year.

During 1987, ore was extracted from the GKP zone located about 1.5 km north of the original Supercrest underground workings. “Most of the work was done on the 2nd level where grades obtained were lower than expected as a result of irregularities in the orebody,” said Akaitcho President David Emery at the company’s recent annual meeting in Toronto.

At year-end Emery said proven and probable reserves in the GKP zone were 10,000 tons grading 0.359 oz gold per ton. With an additional 29,000 tons of grade 0.335 oz at the original minesite, total mineable reserves are estimated at 80,000 tons grading 0.286 oz.

That compares with 176,000 tons at 0.26 oz on Dec 31, 1986.

Due to increased production at Supercrest last year, Akaitcho reported net income of $30,338 in 1987 compared to a loss of $227,783 in 1986.

However, development costs at the GKP zone where ore is proving to be more erratic than indicated by diamond drilling, led to a first quarter loss of $29,172 compared to a gain of $25,424 during the first three months of 1987.

During the quarter, work on the GKP zone included a lateral advance of 55 ft and 142 ft of ramping. While output during the quarter was only 235 oz, the extraction rate is increasing and by the end of May Giant Yellowknife had produced 561 oz.

After peaking at $1, Akaitcho Yellowknife shares were trading recently on the Toronto Stock Exchange at a low for this year of 50}.

Giant Yellowknife holds 44.5% of Akaitcho’s issued shares.