Glimmer achieves commercial production

Company officials and visitors examine core from the Glimmer mine.

New Year’s Day 1998 will mark the start of official production for the Glimmer mine project in northeastern Ontario.

Operator Exall Resources (EXL-T) says the achievement reflects the positive results of recent advanced exploration and a bulk-sampling program at the property.

Exall owns 65.5% of the underground mine tonnage. Minable reserves stand at about 240,000 oz. contained gold at an average grade of 0.415 oz. gold per ton.

The Glimmer mine poured its first gold in April of this year, and was completed on schedule and under budget. “The steady improvement since then, both in terms of the amount of gold poured and the cash costs, is expected to keep the Glimmer mine one of Canada’s lowest-cost gold producers,” says Exall Chairman Stephen Roman.

The mine produced revenues of $3.16 million in November from the pouring of 7,390 oz. gold at a cash cost of US$220 per oz. The company notes that the November cash cost includes a one-time charge for recalculated crushing expenses of US$18 per oz. (which brings the normalized cash cost to US$202).

In October, the mine produced revenue of $2.4 million from the pouring of 5,514 oz. gold at a cash cost of US$256 per oz. The mine’s rated annual output of 65,000 oz. was first reached in August.

Exploration is ongoing, and is expected to increase reserves next year.

Exall is particularly encouraged by the results of a recently completed induced-polarization survey that revealed an extensive anomaly directly beneath, and along strike with, current mine workings. A drilling program is under way to test this structure.

In accordance with its joint-venture agreement with partner Glimmer Resources (GME-V), Exall’s majority interest had enabled it to assume operatorship of the mine. However, a recent Ontario Court (General Division) decision on a dispute over the parties’ contributions to the joint venture came down in favor of Glimmer, which could result in a change in the recognized ownership, and possibly the operatorship, of the mine.