Goldpost targets production from Hislop gold properties

With an $8.4-million exploration- development program budgeted for 1988, Goldpost Resources Inc. (TSE) expects to have sufficient data by the end of October for a feasibility study leading to a production decision for both its Hislop East and Hislop West gold properties near Ramore in northern Ontario.

Target is a 500-ton common mill for these two properties that would turn out 25,000 oz gold in 1989, rising to 35,000 oz the following year, states Patrick R. Heenan, president, in the annual report. This would establish a cash flow to advance the company’s other gold projects, he adds. Metallurgical test work is already under way.

Recent underground results at the Hislop West have been quite encouraging, where drifting on the 200-ft horizon from a decline has averaged 0.56 oz across 7.0 ft for 130 ft and continuing. The decline itself is now approaching the 400-ft horizon where a second level will soon be established. Over 25,000 ft of underground drilling was carried out on this particular project during the past year.

Work is more advanced on the nearby Hislop East ground, where a reserve study carried out by H. E. Neal & Associates estimates 614,000 tons grading 0.194 oz to a maximum depth of 300 ft except in the shaft area where calculations have been made to a depth of 450 ft.

A contract has been let to drive a 3,600-ft decline to a vertical depth of 600 ft in the shaft area, the report states. A second decline on this project is being driven to the 130-ft horizon in the South zone area. Two surface drills are testing both the South and West zones.

The company recently reported acquisition of a long term lease on the Gold Hill mine in Idaho, including a 10-year option to purchase this large property outright for $8 million(US).

In previous operations this mine turned out 391,460 oz gold mainly from a high grade gold vein. Goldpost plans to drill a 1,500-ft unexplored length of this structure from surface and possibly put down a decline.