Gold production planned by Rouyn Mining in ’88

The Francoeur property of Rouyn Mining Resources could be in production as early as next March pending receipt of a positive feasibility study, President Jean-Guy Rivard told a group of investors in Toronto.

Production at the Francoeur project would initially begin at a rate of 500 tons per day. This would be adequate for annual gold output of approximately 30,000 oz.

“We are building a new mining company,” Mr Rivard said. With three underground projects underway, including the Francoeur, Mr Rivard said that ultimately Rouyn could be producing up to 75,000 oz of gold per year. All three mining projects are located near Rouyn, Que.

Based on an independant assessment of the property, the Francoeur hosts probable reserves of 591,894 tons grading 0.188 oz gold per ton. Possible reserves total 1.6 million tons grading 0.198 oz.

Rouyn has spent more than $5 million on the Francoeur project since 1986. This work includes dewatering the No. 6 shaft to a depth of 1,450 ft, more than 45,000 ft of drilling and rehabilitation work on nine mining levels. This year, the shaft will be deepened by another 700 ft and more underground definition drilling will be completed. A feasibility study is expected by January or February of next year, Mr Rivard added. Financing for this year’s p rogram has been arranged via a placement of Rouyn units with a limited partnership. The offering raised $11.1 million last spring.

At the nearby Wasamac property, probable reserves are estimated at 946,185 tons grading 0.149 oz gold per ton. Also, a crown pillar holds 816,313 tons grading 0.099 oz gold. Mr Rivard noted that Rouyn plans to strip the crown pillar and mine it via an open pit this year. Approximately $2 million has been budgeted for this operation. The company also plans to dewater the Wasamac shaft and construct the appropriate surface facilities needed for an underground exploration effort.

The third project is at Lac Fortune, where Rouyn found its start in 1981. Underground work on the property has outlined probable reserves of 247,385 tons grading 0.157 oz gold. The Francoeur and Wasamac properties were acquired from Lac Minerals in 1985 and 1986 respectively. Rouyn, which is the project operator on both properties, has earned a 50% interest in the Francoeur and has the right to earn the same on the Wasamac. If Lac fails to contribute to either project, its interests can be reduced to nil. Then the company would hold a 15% net profits interest. Both properties were former producing gold mines which were shut down in 1971.