Feasibility study complete next month on Eagle River project

The feasibility study in progress at the Hemlo Gold (TSE), Central Crude (TSE) joint venture at Mishibishu Lake, Ont., should be completed next month, says Hemlo Gold President John Harvey. “If the feasibility study is positive, we would hope to make a production decision and get going after that,” said Harvey who believes the project could be up and running within a year after mine construction commences.

But as the partners wait for 66,000 tons of bulk sample material to be processed at Hemlo Gold’s Golden Giant mine, the joint venture partners are already contemplating their next move.

“The logical next step is to increase tonnage,” said Central Crude President Richard Nemis, who is expecting to see bulk sample results in three to four weeks.

“With 80% of the processing complete, it would appear the cut grade of 0.25 oz. gold per ton is holding up and will perhaps increase,” he said.

According to Nemis, Hemlo Gold has already processed 24,000 tons of material at the Golden Giant mine at Hemlo, Ont. The material was taken from two selective stopes. The balance of development material is now being milled.

Preliminary reserves at Eagle River stand at 1.7 million tons of grade 0.25 oz., but Nemis is convinced future drilling within deposit boundaries will result in a tonnage increase.

Nemis also believes an area located 800 ft. east of known underground workings could be a likely target for summer drilling.

Highlights from drilling in that area include 11 ft. of grade 0.34 oz. gold per ton (uncut) at a depth of about 500 ft. from surface.

As indicated by seven holes drilled to a depth of 2,000 ft., the potential exists for reserves to be increased at depth, Nemis told The Northern Miner.

Meanwhile, engineering firm Bechtel is attempting to determine future mining costs at the Eagle River project, while the joint venture tries to have all permits in hand for this year’s construction season.

Also set to commence when the weather permits is further drilling on the Moss Lake gold property, 70 miles west of Thunder Bay, Ont. Optioned from Tandem Resources (ME) and Storimin Exploration (ASE), Moss Lake has already yielded some interesting values including 1.60 oz. across 13 ft.

“It’s exciting to know that we are an exploration company and we are doing a little exploration,” Nemis joked.