The Timmins gold property in the southern Abitibi greenstone belt of northern Ontario is “a potential company maker,” says Judy Baker, president of Black Pearl Minerals (BLK-V, BPMCF-O).
A new National Instrument 43- 101 technical report on the property reveals an indicated resource of 362,090 tonnes of ore grading 8 grams gold per tonne for 93,140 oz. gold.
The gold property in Tully Twp., 30 km northeast of Timmins, also has an inferred resource of 592,070 tonnes, grading 7.3 grams gold per tonne for 139,888 contained ounces gold.
According to a preliminary economic assessment, at a gold price of US$800 per oz., payback on the project would take no more than 3.5 years from the start of production or 5.5 years after the start of an underground exploration and development program.
Based on indicated and inferred resources, the mine would have a life of about eight years.
The operational break-even gold price would be US$468 per oz. and the break-even gold price for recovery of capital would be US$635 per oz., the technical report stated.
“In the author’s opinion, the geological setting of the property is sufficiently well defined to conclude that there is a valid comparison to be made between the property and the mines that occur in the Bell Creek-Hoyle Pond trend of the Timmins camp,” the technical report said.
Production would be based on a 500-tonne-per-day milling operation with the mill running 300 days per year, for a total of 150,000 tonnes per year of mill feed.
The report worked under the assumption that only 90% of the resource would be recovered, with mill recovery at 95% of contained gold.
Black Pearl has held the property since 1996 and drilled more than 14,000 metres.
The exploration target on the property is a zone of gold mineralization hosted in structurally controlled zones of quartz-carbonate veins.
The junior exploration and development company has found lode gold mineralization typical of gold deposits in the area on its Timmins property.
Currently, the company is trading at about 19 a share. It has a 52- week trading range of 13-42.
Black Pearl has 42.3 million shares outstanding.
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