Toronto-listed Rea Gold is set to begin the engineering work required to complete a final feasibility study of the Bissett gold project in eastern Manitoba.
The decision was made on the basis of results from a recent exploration program.
The project consists of a past-producing, underground mine, together with a mill, situated 60 miles west of the prolific Campbell Red Lake gold district in northwestern Ontario.
Rea believes the mine can be returned to production at a rate of 60,000-70,000 oz. per year. The operating cost is expected to be less than US$250 per oz., and the capital cost of advancing the mine to a rate of 1,000 tons per day is estimated at $30 million. The plan calls for limited production to begin within seven months of a “go decision,” using the existing 500-ton-per-day mill.
Minable reserves are expected to exceed 400,000 oz., and Rea hopes to increase these still further by exploring along strike and downdip of the existing proven zones. Updated calculations will be incorporated into the feasibility study, which is expected early next year.
Exploration results include several stockwork vein intersections on trend to previously discovered veins. Highlights are 26.3 ft. grading 0.28 oz. gold per ton and 12.2 ft. of 0.25 oz. gold.
Be the first to comment on "Bissett moves forward"