Feasibility study started for Black Swan gold bet

A mining feasibility study is being prepared for Black Swan Mines’ Gabanintha project in Western Australia with a view to putting it into production by mid-1987. Arthur T. Fisher, president, says the study should be completed in the next few weeks when final details will be announced.

In any event, more drilling is planned for the Yagahong North discovery which has yielded the highest grade material to date on the property. The material is near surface and is ideal for mining during the early years of operations, he claims, adding that it would increase gold production and lower operating costs.

The higher grade Yagahong North mineralization is open to depth and along strike and the average grade to date has been approximately 0.22 oz gold per ton based on 442 ft of ore grade drill intercepts. One drill hole returned 10 ft of 1.38 oz while 20 ft averaging 0.31 oz was reported from another. Other intercepts included 17 ft of 0.78 oz; 17 ft grading 0.63 oz; 23 ft of 0.27 oz and 40 ft averaging 0.1 oz.

A budget of $500,000(A) has been approved for the latest drilling which is scheduled to begin immediately. The company plans to accelerate its exploration activities in Australia and appears to have the financial means to do so. At the end of September the company had a working capital of approximately $723,899. During the 6- month period ended that date, Black Swan took a small share position in Southern Ventures NL, its joint venture partner. Black Swan recently sold its position and realized a profit of approximately $65,000 on an investment of $104,000.