Croinor sample surprises South-Malartic

A 20,000-tonne bulk sample from the Croinor gold deposit in northwestern Quebec has proved to be higher-grade than had been modelled in resource drilling.

Operator South-Malartic Exploration () announced the bulk sample had an assayed head grade of 3.1 grams gold per tonne, or 26% higher than expected.

South-Malartic had contracted to have the bulk sample processed at the Camflo mill of Richmont Mines (ric-t). Camflo’s conventional cyanidation process recovered 97% of the gold, yielding 1,981 oz. South-Malartic sold the gold for $1.1 million.

The bulk sample had been taken on surface from four separate areas at Croinor, to give a representative result. South-Malartic’s resource model had indicated the sample should average 2.5 grams per tonne.

As frequently happens in Abitibi gold deposits, coarse gold was not representatively sampled by drilling, and actual grades turned out to be higher.

South-Malartic is now looking at defining an economic reserve at Croinor, which has a resource in all categories of 3.1 million tonnes at an average grade of 3 grams gold per tonne. Current mining proposals have the deposit being mined by a combination of open-pit and underground mining, provided the higher grades indicated in the underground resource hold up on further evaluation. “We want to minimize dilution and maximize the grade,” says Malartic President, Leon Methot. “That’s why the solution of open pits and underground is looking attractive.”

South-Malartic holds 75% of the property, which lies 70 km east of Val d’Or, and Huntington Exploration (HEI-V) holds the rest.

South-Malartic already owns the Chimo mill, which Cambior (CBJ-T) sold it in 2000. The 1,400-tonne-per-day plant, 20 km west of Croinor, can be returned to production with a minimum of work, and has all necessary permits.