A recently discovered ore zone could boost profits at the Turk gold mine in Zimbabwe, reports owner Casmyn (CMYN-Q).
The new area, which was identified in the western portion of the mine, is a lens of high-grade sulphide mineralization. Unlike the typical sheeted dyke swarms found at the Turk, the new lens is a steeply dipping tabular body which extends from near the surface to a depth of about 350 metres.
Highlights from drilling include: 7.8 metres grading 7.9 grams gold per tonne in hole 4W-4-6: 7.5 metres grading 4 grams in hole 4W-4-6A; 4.4 metres of 7.2 grams in hole 4W-5-1; and 6.7 metres of 4.4 grams in hole 4.5W-7-1B.
Those intercepts represent higher grades than are usually encountered at the Turk. Historic head grades run about 4.7 grams gold at a cutoff of 3 grams.
The higher grades could lead to lower mining costs through an increase in tonnage mined. In turn, the cutoff grade is also expected to drop.
The underground operation is under development, with full production expected to begin in six months.
The mine currently produces 300 tonnes per day, though the company hopes to increase that rate to 1,000 tonnes. The Turk has a daily hoisting capacity of 1,000 tonnes.
Proven and probable reserves at the beginning of the year stood at 3.4 million tonnes grading 7.1 grams, equivalent to 769,000 contained ounces. The mine contains an additional reserve of 2.6 million tonnes of lower-grade oxide and dump material grading 1.1 grams, equivalent to 94,000 contained ounces.
The property hosts 18 past-producing mines. The total resource stands at 23.3 million tonnes grading 6.2 grams, equivalent to 4.6 million oz.
Revenue from the Turk for the first quarter of 1997 was US$874,645, compared with US$105,378 during the same period last year. The company reported a net loss of $930,415 (or 7 cents per share), compared with a loss of $1.2 million (14 cents per share) in the same period in 1996. The loss, according to Casmyn, is the result of increased exploration expenditures.
Casmyn expects to produce 40,000 oz. gold during 1997, 70,000 oz. in 1998 and 100,000 oz. in 1999.
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