Dumagami says it disagrees with statements by Societe d’Investissement Inc. (Invesfor) claiming that production from the mine could increase to 224,000 oz from 63,000 oz annually.
The Montreal firm recently acquired a 5.5% interest in Dumagami which is controlled by Agnico-Eagle Mines (TSE) of Toronto.
Invesfor’s assertion that the mine’s production capacity will probably be doubled from 2,000 to 4,000 tons per day following a reserve increase in the West zone, is both misleading and taken out of context, according to Dumagami’s Secretary-treasurer Barry Landen.
“Dumagami is studying the possibility of doubling the mine’s production capacity,” said Landen. “But any increases will be predicated on the whole mine not just the west zone,” he told The Northern Miner. Invesfor also claimed in a December press release that recent exploration and development work will allow Dumagami to double production at Cadillac by deepening a second shaft on the West zone. Landen ruled that out also. “If we install a second shaft, it will be on the eastern side of the property,” he said.
All gold plus 90,000 oz silver and 1.5 million lb copper produced from the Donald La Ronde last year was mined from an open pit on the West zone which contains about 3.2 million tons grading 0.164 oz gold per ton or about 60% of the mines’ proven reserves.
Total reserves in all categories stand at about 30 million tons grading 0.072 oz, according to Landen. That includes 5.4 million tons of 0.134 oz.
“We are in the process of revising our production and reserve estimates and we will make an announcement in a short while,” said Landen. “But annual production won’t be anywhere near what this guy (Invesfor President Jacques Forget) is saying.”
While Forget couldn’t be reached for comment, he apparently made his recent projections after touring the property with a number of brokers.
]]>
Be the first to comment on "Dumagami refutes claims of Montreal-based shareholder"