Energex considers heap leaching at Toodoggone gold property

The possibility of combining seasonal heap leaching with conventional milling is being considered by Energex Minerals (VSE) at its Al gold property in the Toodoggone area of British Columbia.

“Project economics can be substantially improved by an integrated milling/leaching operation which will increase annual gold production,” President A. Birkeland says.

He adds that preliminary metallurgical tests on low grade ore samples were successful and column leach tests are now under way. If recoveries are positive, the feasibility study will look at an expanded operation. A production decision is expected shortly after all test results are received.

Feasibility work up till now has been based on milling around 200 tons per day with start-up envisaged for early 1989 (N.M., Jan 25/88). Changing the scale of operations will delay the production schedule at least until summer 1989. Birkeland estimates capital costs in the order of $12 million.

Meanwhile, a $2-million drilling program is planned for 1988. Subject to regulatory approvals, financing has been arranged through two private placements of flow-through shares for $1,250,000 and $250,000 respectively.

Drilling will concentrate on the West zone, parallel to the Bonanza orebody. The West zone, discovered at the end of the 1987 exploration season, is up to 80 ft wide at surface and has been traced along a strike by trenching for 1,200 ft.

Geological reserves on the property are 1.9 million tons grading 0.157 oz gold per ton in all categories. Proven in-situ reserves are 809,000 tons grading 0.175 oz.