Dejour awaits project moneys

It looks as if the Detour Lake mine is gearing up its new underground gold mine with production slated at 1,800 tonnes of ore per day by December, 1987.

“Though the final approval has not been given, we are proceeding on the expectation that the project will be given the green light,” Henry Brehaut, president of Campbell Red Lake Mines, tells The Norther Miner. Campbell is operator of the project with a 50% interest, while Amoco Canada Petroleum holds the remaining 50% interest.

The underground contractor is already on the mine site, located 125 miles northeast of Timmins, Ont., says Mr Brehaut. And indeed the company ran an advertisement in the Dec 1 issue of The Northern Miner. This anticipated positive decision has been long awaited. Shortly after the mine began open pit production back in November, 1983, at a cost of $139 million, it was troubled by three problems.

In light of these problems, plans were revised in an attempt to transform the project from a money- loser into a winner. Costs were cut and efficiencies were improved.

In 1985 the company embarked on a 2-phase underground development program. The first phase at approximately $12.5 million has now been completed, says Mr Brehaut. The shaft is at a depth of 1,800 ft.

The estimated cost of phase two, which brings the mine into underground production, is in the order of $58 million.

Open pit mining will continue on a limited basis, says Mr Brehaut. The mill is expected to continue to operate using stockpiled ore and remaining pit ore.

As of Dec 31, 1985, total proven and probable reserves in place were estimated by Campbell at 9.3 million tons with an average grade of 0.131 oz gold per ton. Updated reserve figures are anticipated once mining starts.

Exploration on several properties controlled by Dejour Mines will be gin upon the completion of flow- through share financings, the company says. A small $350,000 financing has been completed and additional financings are being arranged.

The $350,000 will fund work on Dejour’s Poirier Twp., Que., property south of Joutel. A program of ground geophysical surveys will be completed in January, 1987. Drilling of geophysical targets will be dependent on the amount of flow- through funding raised.

A small program of surface exploration is also planned for the Hauy property near Chibougamau, Que. In Beschefer Twp., Que., additional overburden drilling is planned for Dejour’s property north of Joutel. Work will focus on an area which yielded anomalous gold and copper values in previous overburden drilling.

Dejour has also acquired 114 claims in Jurie Twp., Que., which cover an old gold showing last explored in the 1920s. Prospecting is planned in 1987, Dejour says.

Dejour has also received the third of five annual payments from Yorbeau Resources of $105,000. The payments are in consideration of Yorbeau’s purchase of Dejour’s interest in the Ellison gold property in Bousquet Twp. Dejour retains a 4.5% net profits royalty in the Ellison property. ,N1

** Green light anticipated for Detour Lake go-ahead **