The new Jasper mine, 87 miles north of La Ronge, Sask., poured its first gold bar at an official opening ceremony on June 7. The mine is owned 80% by Cameco (operator), and 20% by Shore Gold Fund (ASE), both of which are based in Saskatoon.
Weighing in at 700 oz., the first bar had a value of nearly $300,000, based on current gold prices of US$360.
Since the mine first began production on April 15, the millhead grade has exceeded expectations, reaching 0.60 oz. gold per ton, said Cameco’s Vice-President Bernard Michel.
“The (mine) opening underlines Saskatchewan’s continuing role as a reliable gold producer,” he said. “We’re proud to contribute to the record of successful gold development in the La Ronge belt.”
Ore from the underground mine is processed at the nearby Star Lake mill, roughly three miles north of the Jasper deposit.
Operating at 250 tons per day, the mine will produce about 85,000 oz. per year during its anticipated 2-year operating life. Total operating costs are estimated at roughly $253 per oz. Reserves stand at 180,000 tons grading 0.47 oz., and an extensive surface and underground exploration program continues on the property to extend reserves.
The Jasper Pond gold zone stretches along two properties (Fork Lakes to the north and Transom Lake to the south). The bulk of the project lies on the Fork Lakes property. Last November, Cameco and Shore Gold purchased the interests of three other companies in the project for $10.6 million.
Capital expenditures by the partners for preproduction and development costs totalled more than $7 million. The mine employs about 80 people.
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