Cross Lake aims to revive QR mine

Vancouver — An independent feasibility study commissioned by Cross Lake Minerals (CRN-T, CLKMF-O) has concluded that the past-producing QR gold mine near Quesnel, B.C., could be placed back into production for a modest capital cost of about $4.5 million.

The study estimated that a total of 72,840 contained ounces gold could be recovered from a combined open-pit and underground mining operation over several years, with potential for a longer-lived operation if additional resources are developed. Cash costs were estimated at US$393.18 per oz. and total costs of US$462.44 per oz.

The plan calls for the mining of an easily accessible underground resource within the Midwest zone, an open pit at the Northwest zone, and a combination of open-pit and underground mining of the West zone. These zones are the largest of five zones that comprise the skarn deposit.

The company says it is negotiating the necessary financing to place the mine back into production. Negotiations are also under way to construct a power line to replace diesel power with hydro power, which would reduce production costs.

Assuming the necessary financing is raised, Cross Lake believes it could achieve production within three months of starting fieldwork. The mine was previously permitted for production.

The QR mine was brought into production by a previous operator in 1994. Mining ceased in 1998, with 118,004 oz. gold produced from an estimated 1.06 million tonnes averaging 4.1 grams gold per tonne.

Cross Lake also holds an option to earn a 65% interest in the past-producing Porcher Island gold property near Prince Rupert, B.C. The project hosts known resources that are not yet compliant with National Instrument 43-101 reporting standards.