Bralorne gold property nears feasibility stage

A $3.1-million exploration program aimed at advancing the Bralorne gold mine property of Golden North Resource Corp. (TSE) and Imperial Metals (TSE) to the production feasibility stage by year-end is now under way in the Bridge River gold camp, about 100 miles north of here.

Corona Corp. (TSE), which announced last week it will up its stake in Golden North to approximately 45% from 22%, is the operator of the program that includes underground rehabilitation work along with approximately 30,000 ft of surface and underground diamond drilling.

As part of Corona’s strategy to streamline operations, Golden North will acquire Corona’s interests in the Bralorne property and the Cariboo-Bell property, a B.C. copper-gold project. The total cost of the acquisition by Golden North is $11,599,000, to be settled by the issue of 1,964,00 of its shares valued at $5.76 per share, and a cash payment of $279,000.

Golden North will end up with a 57.54% interest in the Bralorne project and a 38.4% interest in the Cariboo-Bell Property, in addition to interests in seven other properties and assets owned by two of Corona’s wholly-owned subsidiaries. The 4,188-acre Bralorne property hosts the famed Bralorne, Pion eer and King mines which together produced over 4.1 million ounces of gold from the early 1900s to 1971, representing an average recovered grade of 0.51 oz gold.

Golden North reports current reserves of 1,064,000 tons grading 0.27 oz gold per ton, which includes higher grade reserves of 322,000 tons grading 0.35 oz.

According to Golden North’s newly appointed president, Paul Saxton, the objective of the current program is to extend the known reserves and to expand on recently discovered targets between the Bralorne, Pioneer and King mines.

Golden North Chairman John S. Godfrey said efforts are initially being directed towards increasing the higher grade reserves found above the 1,000 Level to assist “in establishing lower cost production.”

Godfrey also said management is considering implementing an expanded exploration and development program intended to produce a larger tonnage operation than had previously been considered.

While Godfrey told the Northern Miner it would be preliminary at this stage to indicate what the increase in tonnage would be, he did say studies are “on the drawing board” to determine the viability of a much larger scale operation than the 300-500-ton-per-day operation previously envisioned.

Golden North is also involved with Corona Corp. in an ongoing exploration effort on its Nickel Plate properties in the nearby Hedley gold camp, near Corona’s producing mine. The 1988 budget is $2.4 million and this year’s program will include 40,000 ft of percussion and diamond drilling.