Drilling brightens picture at Joe Mann

Underground exploration by Campbell Resources (CCH-T) is outlining new gold mineralization at its Joe Mann mine, south of Chibougamau, Que.

Underground drilling and drifting encountered a zone of mineralization on the 2500 level (762 metres deep), about 330 metres east of the existing shaft. There, a crosscut intersected an 11.9-metre width of mineralization with an average grade of 10 grams gold per tonne. The zone is unusually wide for the mine, where widths typically are about 2 metres and most stopes are mined by shrinkage.

Campbell has finished 21 underground drill holes along sections 297-427 metres east of the shaft. All the holes encountered mineralization over core lengths of 3-33 metres. Average gold grades along these intersections varied from 3.4 grams per tonne over 5.3 metres, at the eastern end of the zone, to 23.3 grams over 8.5 metres.

The zone, first discovered by drilling from the mine’s 2350 level (716 metres below surface), has been intersected by deep drill holes at a depth of 815 metres. It appears to be between two known gold zones at the mine, the North and Main zones, and it is developed in and around a porphyry dyke. Infill drilling, now under way, will establish whether the zone is continuous.

Campbell has adopted a new mine plan to develop six levels between a depth of 716 and 1,128 metres. Over the next six years, the company will mine 1.6 million tonnes of ore with an average grade of 8.8 grams gold per tonne, with cash operating costs projected at US$245 per oz. and total costs at US$270 per oz. The unit cash cost figure was previously estimated at US$260 per oz. and the total cost at US$285 per oz.

Under the plan, ore will be mined from the Main zone and the previously unmined West zone, where 100,000 tonnes have been brought into reserve at higher levels of the mine. Further development at depth is expected to provide more reserves in the West zone.

The mine will move to a 7-day production week from the present 5-day week, and will no longer shut down for two weeks in the summer. The union, which supports the new mine plan, has agreed to a 2-year extension of the existing contract with an hourly increase of 25 cents and a bonus formula dependent on the price of gold.