Feasibility indicates QPX’s QR can be put into production

Based on the positive recommendations of an independent feasibility study, QPX Minerals (TSE) is looking to place its 100% owned QR gold deposit near Quesnel, B.C., into production. The study, done by Vancouver- based Orocon Inc., estimates reserves at 1.3 million tons grading 0.17 oz. gold per ton. At a targeted production rate of 825 tons per day, the mine would produce 44,000 oz. of gold per year over its 4.5-year life at an estimated cash cost of US$200 per oz.

Total cost, including recovery of capital, is estimated at US$300 per oz. Capital investment, including working capital requirements, is pegged at $22 million. The project would also require capital investment in years three and four totalling $6 million which would be financed from cash flow.

The study calls for initial production to come from the Main zone by open pit mining, followed by underground mining in the West and Mid-west zones.

James Hendry, secretary, indicated that a production decision would hinge on QPX attaining financing for the project.

At the company’s True Blue property, four kilometres southwest of Kaslo, B.C., a drilling program is expected to begin shortly to test the down-plunge extension of a massive sulphide showing at surface.

The True Blue is reported to have produced 96 tonnes grading 8.9% copper, 58.6 grams silver per tonne, and 1.3 grams gold at the turn of the century.

Following a merger earlier this year with Inter-Pacific Resources, QPX has 11.7 million shares outstanding, about $220,000 in working capital and a deferred loan of $200,000 due in April, 1991. The loan is payable to Placer Dome (TSE), which owns 27% of the company’s outstanding stock.