The Timmins gold property in the southern Abitibi Greenstone belt of northern Ontario is “a potential company maker,” Judy Baker, president of Black Pearl Minerals (BLK-V), told The Northern Miner.
A new National Instrument 43-101 technical report on the Timmins gold property reveals an indicated resource of 362,090 tonnes of ore grading 8 grams gold per tonne for 93,140 oz. gold.
In addition the gold property in Tully Township, 30 km northeast of Timmins, has an inferred resource of 592,070 tonnes, grading 7.3 grams gold per tonne for contained gold of 139,888 oz. gold.
According to a preliminary economic assessment, the company says payback on the project — at a gold price of US$800 per oz. –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 8 years.
The operational breakeven gold price would be US$468 per oz. and the breakeven 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 operating 300 days per year, for a total of 150,000 tonnes per year of mill feed.
“It is assumed that only 90% of the resource will be recovered and that mill recovery will be 95% of contained gold,” the report noted.
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 gold property.
The technical report noted that the gold-bearing vein structure “is hosted in a sheared tuffaceous facies of a mafic volcanic sequence between hanging wall (north side) meta-sedimentary rocks and footwall (south side) ultramafic volcanic rocks.”
The company is currently trading at about 19 a share. It has a 52-week trading range of 13 to 42.
Black Pearl has 42.3 million shares outstanding.
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