Gold mining in Nova Scotia hinges on success at Orex

Their sudden departure, after spending $5 million on drifting, crosscutting and diamond drilling left John Logan, the holder of the 76-claim property, in a quandary. Under a development licence in Nova Scotia, he would have to make a hefty expenditure to maintain the licence.

A private company called Antioch Resources, financed by friends and acquaintances of former Getty Resources President Dick Atkinson, was interested in the ground.

That company is now seeking public funds along with a listing on The Toronto Stock Exchange to develop a small, 200-tonne-per-day gold mine here.

The company had two diamond drills underground, at the time of our visit, both operated by contractor Ideal Drilling of Bathurst, N.B. They are seeking the projection of a gold-bearing kink structure believed to structurally control gold values which are markedly higher than those in the more traditional bedded leads already well developed by underground workings. These workings were opened up by Cominco in the period between 1934 and 1947.

That company mined 90,900 tonnes of ore by resueing methods from a number of bedded leads, recovering 1,500 kg (50,000 oz) of the yellow metal. While developing a new stope, it appears Cominco discovered the higher-grade zone in an adjacent kink structure, The Northern Miner observed on an underground tour of the mine.

Antioch vice-president of mining, geologist John Tully, has worked out the geometry of the structure and has designed a drilling program to test the projection of the structure down plunge. Seabright Exploration had drifted to within one metre of the structure.

“We’re happy with what we’ve got so far, but it is very complicated,” Tully says. “We’re getting very close (to having enough tonnes to justify opening a mine).”

Seventy percent of the gold on the Caribou property is larger than 100 mesh (0.15 mm) so gravity milling methods would likely be sufficient to recover most of the gold.

Antioch President Gregory Lipsker is working on a public offering and Atkinson’s brother, mine engineer Peter Atkinson is working out the details of how to mine the deposit using a specially-designed hydraulic drill rig.

Dynatec Mining is managing the underground contract work.

Cobequid Resources (VSE) holds an option to earn a 100% interest in an adjoining 80-claim property, subject to a 3% net smelter return. Hecla refinancing Mooseland bet

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