Echo Bay Mines (TSE) is still tallying up the results of a feasibility study on Nuinsco Resources’ (TSE) Cameron Lake gold property in northwestern Ontario.
But Nuinsco President Doug Hume said he expects to know by the end of this month whether or not reserves at the property are sufficient to support a 500-ton-per-day mining operation.
As part of a feasibility study funded by Echo Bay, Strathcona Minerals recently did a tower sampling study on 12,000 tons of stockpiled ore.
The test was necessary because gold distribution at Cameron Lake is so erratic that reserves can’t be calculated properly by drilling alone. Following a 62,000-ft underground drill program on three levels, Echo Bay is attempting to place 875,200 tons of grade 0.182 oz gold per ton in possible reserves in the proven category.
“We are just marking time at the moment,” Hume told The Northern Miner. On June 30, Nuinsco (now a 51%-owned subsidiary of Echo Bay) had increased its cash position to $1.1 million from $428,237 at the same time last year.
However, much of that is being spent by Echo Bay on the Cameron Lake feasibility study which is expected to cost $8.1 million by the time it is complete, Hume said.
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