Fairfield looks to expand Siwash

Having recalculated the resource at its Siwash property in southern British Columbia, Fairfield Minerals (TSE) is considering carrying out additional open-pit mining.

The diluted, probable, open-pit resource is estimated at 12,500 tons grading 1.72 oz. gold per ton.

The estimate is based on a mining width in the pit of 1 ft., with no dilution.

The company is holding discussions with the contractor that carried out the previous phase of open-pit mining, and with Asarco, which purchased the high-grade, gold-silica ore during previous operations for its Montana smelter.

Unfortunately, any decision to resume mining will likely be delayed by a medical emergency suffered by John Stollery, president and chief executive officer of the company, whose condition at presstime was listed as stable.

In the meantime, corporate operations are being headed by Jeffrey Rowe, manager of exploration, in consultation with a com- mittee of the board of directors.

Past production at Siwash netted 47,000 oz. from open-pit mining during 1992-1994 plus a further 3,750 oz. from underground test mining in 1994. Head grades for both the surface and underground operations averaged more than 2 oz. gold.

Drilling over the past year defined an underground resource below the open-pit area. It is estimated at 22,300 tons grading 0.78 oz. gold, based on a minimum mining width of 3 to 4 ft., plus an additional dilution of 15% at a zero grade.

The probable resource figures are based on a 33-by-33-ft. drill spacing and an underground cutoff grade of 0.51 oz. gold over 3.3 ft.

A further underground resource, in the possible category, is estimated at 99,000 tons grading 0.69 oz. gold. The figure is based on a drill spacing greater than 33 ft. and up to 165 ft., and includes dilution.

Fairfield hired consulting engineering firm Roscoe Postle Associates to calculate the resource independently. Roscoe’s total figure came within 4% of Fairfield’s number.

Plans for 1996 call for surface drilling to test and expand the possible resource. If surface drilling warrants, the existing decline will be extended to allow the company to conduct closely spaced, underground, definition drilling.

Fairfield is in good shape financially, with cash and term deposits totaling $4.4 million and roughly 7 million shares outstanding. The company also has about 2,300 tons of ore stockpiled at its Siwash mine; the material contains an estimated 8,400 oz. gold. The realizable value from the ore is estimated at $3.6 million, based on current gold prices and exchange rates.