Bitech, Greenstone see `89 production at Tache

Bitech Energy Resources (ASE) is targeting late 1989 as a production start-up date for the company’s Tache Lake polymetallic deposit in northern Quebec. Shared equally with Greenstone Resources, (TSE), the property hosts reserves of 1.58 million tons grading 0.055 oz gold and 3.31% zinc per ton. Reserves amenable to open pit mining total 450,000 tons grading 0.07 oz gold and 4% zinc. “We’re looking forward to production from Tache sometime in the fall of 1989,” Bitech president James Wade, told The Northern Miner. Wade is also the president of James Wade Engineering, a mining consulting firm.

Bitech has been especially encouraged by an ore sorting system which almost doubled the grade in a 2-ton sample of Tache material, Wade says. Gold values increased from 0.07 oz to 0.147 oz in sorted rock. Silver, which is marginal in the zone, assayed 1.37 oz in the sorted material. Lead and zinc values improved to 1.69% and 8.72% respectively.

The higher lead values will enable Bitech and Greenstone to produce a lead concentrate in addition to a zinc concentrate. The advantage is that gold and silver credits, which originally reported to the zinc concentrate, will now report to the lead concentrate. The lead concentrate will enable a much higher level of precious metals recovery than that which would have been expected from the zinc concentrate.

Following the completion of a 30-ton sample, Inverhouse will process a larger 5,000-10,000-ton bulk sample before making an official production decision, Glenn O’Gorman, manager of engineering at Wade Engineering, says.

This bulk mining and metallurgical testing program, which is scheduled for completion by October, will be followed by a feasibility study. This study should be completed sometime in February, 1989, O’Gorman added.

Capital costs are estimated at $4 million for crushing, sorting and site facilities, Wade says. Operating costs to deliver a ton of ore to the mill are calculated at $29 per ton. Bitech and Greenstone plan to negotiate a custom milling contract with one of the nearby mills in the Chibougamau area.

Considerable exploration potential remains on the property. At the main deposit, the open pit reserve is to a depth of 400 ft. By deepening the pit to 600 ft, another one million tons of similar grading material can be added bringing total reserves to 1.5 million tons, Wade explained.

Bitech is also active on several other properties in Quebec and in Newfoundland. In the latter province, exploration is focusing on the gold potential of two properties — the first on the Baie Verte Peninsula and the second located in south central Newfoundland.

Following a proposed reorganization of Bitech, the company’s name will be changed to Inverhouse Resources.