Golden Patricia mine about to embark on development and expansion

Considered one of the most promising new mines in Canada, the Golden Patricia mine, 45 miles west of Pickle Lake in Northwestern Ontario, is about to enter a new era of development and expansion. Don Janes, Sioux Lookout’s regional geologist, compares the mine’s potential to other high-grade ore deposits in Canada. Less than three years after the first discovery hole was drilled, the Golden Patricia mine began commercial production on Oct. 1, 1988, one month ahead of schedule. Within nine months of production, the mine had already exceeded its annual target of 48,000 oz. of gold.

Productivity continued to improve after the owner Bond International Gold successfully took over mining operations from the contractor on Feb. 1, 1989. Bond is now 65% owned by LAC Minerals.

By the end of 1989, due to higher recovered grades, increased tonnages milled, and higher mill recovery rates, the mine produced 78,750 oz., 64% more than originally anticipated.

In fiscal 1989, the cash production cost averaged US$242 per oz., and in the six months to Dec. 31, 1989, cash costs averaged $223 per oz.

John Pearson, LAC’s manager of public relations, said production in 1990 is targeted at 76,000 oz. and will be less than last year because of lower-grade stopes and more selective, narrow mining methods. In fact elimination of waste-rock dilution is a priority at the mine. Miners are apparently encouraged to keep mining widths down to 3-4 ft.

Most of this year’s production came from above the 650-ft. level. Gold output in the first quarter of 1990 was 19,402 oz., up 20% from last year’s first quarter, at an average cash cost of US$234 per oz. Production in the six months to June 30, was 36,799 oz., compared with 35,298 oz. in the same period last year, at average cash costs of US$262 per oz. and $265 per oz. respectively.

Mining is by shrinkage open stoping, accessible by two ramps; one is used for ventilation. Milling is by a gravity circuit and a cyanidation-zinc precipitation circuit at 350 tons per day. Ore recovery improved from 94% in 1989, to 96.4% in the first quarter of this year, and 95.6% in the six months to June 30.

Recovered grades averaged 0.63 oz. per ton in the first quarter and 0.57 oz. in the six months to June 30.

The deposit is in the Meen- Dempster Archean greenstone belt and has been outlined for over two miles along strike to an average depth of 650 ft. Mineralization has been intersected at depths up to 2,200 ft. Visible gold occurs throughout the narrow, steeply dipping cherty quartz vein. Favorable stratigraphy has been traced by geophysical surveys for a total of eight miles along strike and continues into the Muskeg Lake exploration property to the northwest and southeast.

The US$35 million mine-mill complex was the first new gold producer in the Pickle Lake region in over 20 years. Not long afterwards, Placer Dome’s Dona Lake mine, five miles southeast of Pickle Lake, began operations in Feb. 1989, which created 140 new jobs. Not only Pickle Lake is benefiting from the economic stimulus of new mine and exploration projects in the region. Services, and equipment and supplies for the Golden Patricia mine come from communities to the south such as Dryden, Sault Lookout and Thunder Bay.

Miners and company employees from as far away as British Columbia are flown in on a rotating 14-week schedule out of Dryden, Ont. During the winter months, heavy equipment and supplies are brought in by ice road.

Extensive surface diamond drilling was carried out in 1989 to increase reserves. A US$1.7-million exploration program was completed this summer. Drilling tested the 8-mile horizon that hosts the main Golden Patricia deposit and several other showings within the contiguous Muskeg Lake claims. Assay results will be announced as soon they become available.

Meanwhile a US$1.7-million 2-phase underground exploration program started at the beginning of the year. More than 65,000 ft. of diamond drilling will test ore potential between depths of 650 and 2,000 ft. With a “hit ratio” of 55%, or one out of two holes intersecting ore-grade mineralization, Pearson is enthusiastic about results so far. The first phase, completed in mid- summer, tested ore potential between 650 and 1,300 ft. The second phase, in progress, is testing between 1,300 and 2,000 ft.

If sufficient minable reserves are defined, the company may well decide to put down a shaft soon. A decision will be made by the end of this year.

As of Dec. 31, 1989, proven and probable reserves stood at 446,000 tons grading 0.61 oz.

Of the 220 people employed by the mine, about 40 come from local native reserves. Bond received a $39,000 grant from the federal government to assist with training costs. When the mine first opened with 140 people, Bond had an agreement with the Windigo Council to draw at least 30% of its workforce from local native reserves. The mine maintains the policy of hiring as many natives as possible.

In November, 1989, LAC acquired 65% of BIG for US$373.8 million. LAC thereby gained control over the Golden Patricia mine and four other producing mines in North and South America.

With potential to increase its reserves substantially, and one of the most successful teams of explorationists and miners in the country, Golden Patricia has a bright future to look forward to.