Operator TVX Gold (TSE) has advised Wilanour Resources (TSE) and Pronto Explorations (TSE) that it “would not be prudent” to bring the old Cochenour mine near Red Lake, Ont., back into production at current gold prices.
Although more than $9 million has been spent exploring the former producer during the past 3 years, the partners have outlined less than 200,000 tons of high-grade reserves in the proven and probable categories. Including the possible category, total reserves stand at 446,979 tons averaging 0.56 oz. per ton, based on a cut-off grade of 0.25 oz. per ton.
“We estimated our situation to be similar to that of other mines in the Red Lake area,” said David Browne, vice-president of mines exploration for TVX. Referring specifically to Dickenson Mines (TSE), which is struggling to bring production costs below the $400-per-oz. level at its A.W. White mine, he said “I don’t think we can be any smarter or any better than they are.”
During the winter, TVX completed two raises as well as drifting and drilling below the 2,200-ft. level. Browne said no decisions have been made with regard to future exploration of the mine.
TVX holds a 50% stake in the Wilanour project. The remaining interest is divided between Wilanour (30%), Pronto (12.5%) and Robert H. Fasken (7.5%).
According to TVX, Pronto is in default of joint-venture payments totalling $613,942. Nearly 2.3 million oz. gold were taken from the Cochenour mine before it was closed in 1971.
Be the first to comment on "Cochenour fails feasibility based on current gold price"