Diepdaume plans to start up mill

Toronto-based Diepdaume Mines (VSE) plans to start up its custom mill in the Timmins gold camp of northern Ontario this month.

Initially, the mill will be fed by a 60,000-ton stockpile from the Ross mine, a past producer near Holtyre, Ont., said Diepdaume President Pat Sheridan. The company also plans to conduct a limited amount of underground exploration at the former Preston East Dome mine, where the mill is situated.

Diepdaume’s announcement follows the release of encouraging results from the adjoining Paymaster gold mine project, where partners American Reserve Mining (ME) and Placer Dome (TSE) recently intersected a 96-ft. section grading 0.31 oz. gold per ton in a crosscut at the 6,025-ft. level.

The results prompted Sheridan to buy an 18.5% personal stake in American Reserve. But Diepdaume’s decision to start up its mill and the Paymaster find are purely coincidental, he said.

The custom mill, which operated briefly during 1988-89, is capable of processing ore at a rate of 500 tons per day. Sheridan said he has been approached by a number of companies interested in providing mill feed.