Edwards mine grade tops estimates

The Edwards gold mine near Dubreuilville, Ont., will make $5.5 million in profits by the end of August, reports VenCan Gold (VCG-M).

Net profits from the mine, which is operated by River Gold Mines (RIV-T), are shared equally by VenCan and River.

Approximately 44,000 tons of Edwards ore, which grades 0.8 oz. gold per ton, are to be milled at the River Gold mill near Wawa, Ont., during July and August 1997. Another 11,000 tons will be milled in December 1997, and plans call for a further 20,000 tons to be mined and milled by mid-1998.

Assuming a gold price of $470 per oz., the ore milled in December will result in a total profit of $2.4 million for VenCan and River, and the milling of Edwards ore in mid-1998 will net $4 million. When Edwards ore is not being processed, mill feed will consist of ore from River’s Eagle River mine.

As of mid-May, nine lifts had been completed on the Edwards’ Porphyry zone stope, and seven lifts have been completed on the Carbonate East and West zone stopes. To date, a total of 10,000 tons of ore has been brought to surface, and more than 9,000 tons of broken rock remain underground.

To date, underground chip sampling at the Edwards mine yields an overall, weighted average grade of 0.96 oz. gold per ton (uncut) across an average width of 6.52 ft. The arithmetic average of all underground chip sample assays to date is 1.11 oz. gold per ton. An independent reserve report prepared by Gamah International in April estimates an in situ grade of 0.83 oz. gold per ton contained within the first 61,500 tons of proven reserves.