Feasibility Study Near For QR Gold Deposit

A $1-million program ending in a feasibility study on the QR gold deposit near Quesnel, B.C., is scheduled for completion in early 1989 by QPX Minerals (VSE). According to Tim Ryan, president, a production decision may then be possible by the second quarter of 1989.

QPX Minerals was formed by Placer Dome (TSE), Canada’s largest gold producer, and a private exploration group consisting of MineQuest Exploration Associates and GoldQuest Partners. It was publicly launched by the mining giant earlier this year as an exploration vehicle, with its core holding being a 50% interest in the QR deposit. Placer Dome now has an approximate 17% stake in the company, with the remainder held by the public and the exploration group.

QPX Minerals has just completed a $1.1-million-program, most of which was for drilling to find reserves in addition to the present one million tons at 0. oz gold per ton. Ryan said the program was successful in identifying a fourth zone, the East zone, which is similar and adjacent to the Main zone, but at greater depth.

Ryan adds that grade and tonnage of the new East zone will be determined in the next phase of work, which will also include detailed drilling of part of the Main zone and the West zone to upgrade reserves to a mineable category.

The program is also designed to calculate total mineable reserves, drill a limited number of geotechnical holes, and develop a process flow sheet and mining plan. Preliminary environmental and metallurgical studies have already been completed and studies show the ore is amenable to conventional treatment, with 50% of the gold free-milling and over-all recoveries averaging 95%.

Pre-feasibility studies at QR have estimated a minimum 7-year mine life, based on present reserves, with production at a rate of 400 tons per day. QPX states that independent engineers estimate reserves can be doubled with additional drilling.

The Main zone is amenable to low-cost open pit mining and the remaining zones will require various mining methods. A room and pillar mine is planned for the West zone, while a mechanized cut and fill operation is being considered for the Midwest zone. The property is accessible year-round.

QPX also holds a number of other projects (principally gold) optioned in by MineQuest, Placer Dome and third parties.