Chesbar, Murgold set sights on mid-1989 gold production

The Chester Twp. gold project in northern Ontario being developed by Chesbar Resources (TSE) and Murgold Resources (TSE) could be operational by early summer, 1989.

Chesbar President J. T. Flanagan said tenders have gone out for construction of a 150-ton-per-day test mill for the project, located between Timmins and Sudbury. Plans call for turning the facility into a production mill, capable of an initial output of 10,000-15,000 oz gold per year.

Flanagan said sufficient reserves have been outlined as a result of underground exploration by way of a ramp to justify construction of the test mill. Total reserves currently stand at 482,226 tons grading 0.25 oz gold per ton, including 71,078 tons grading 0.4 oz in the probable category.

Chesbar, the operator, has a 60% interest in the project and Murgold a 40% interest. A minority shareholder in Chesbar is Muscocho Explorations (TSE) of which Flanagan is also president.

Less than 20% of the property has been systematically explored, Flanagan said. The deposit is marked by a number of quartz veins hosted within the gabbro-diorite. The vein structures are parallel and display continuity along strike and down dip, Flanagan said. Two working levels

All work to date has been above 500 ft. Two working levels exist, at 200 ft and 400 ft. Significant intersections obtained so far include 320 ft of 0.53 oz gold per ton (across 5 ft) at the 200 level, and 412.5 ft of 0.35 oz (across 4.3 ft) at the 400 level. Drilling indicates the deposit is open at depth, Flanagan said.

Drill hole results published recently (N.M., Nov 21/88) contained incorrect information. Hole 88U-93 intersected 10 ft grading 3.83 oz on the 3B vein.

Additional feed for the Chesbar/ Murgold mill, which will be built for possible expansion and consist of gravity and flotation circuits (no cyanidation), could come from the Jerome gold project located 13 miles to the west.

The Jerome property, a former producer, currently hosts estimated reserves of 437,320 tons averaging 0.19 oz. Chesbar has a 16% interest in the project and Flanagan said consideration is being given to trucking the ore to t he Chester Twp. mill once that project is operational. (Muscocho and an associated company, McNellen Resources, also have minority interests in the Jerome project.)

Another property in which Chesbar has an interest (25%) is the Carmacks gold project in the Yukon. The project is at an early stage of exploration; the company, acting as operator, reports drilling on the No 1 vein structure intersected a gold-bearing quartz vein over an average 4-ft width.