Goose Lake lays more golden eggs

Kinross Gold (K-T) has increased the size of the Goose Lake gold deposit, the largest of six comprising the George Lake project in Nunavut.

Kinross can earn a 70% interest in George Lake from Wheaton River Minerals (WRM-T) by spending $20 million over four years. More than $3 million has been spent so far.

Twelve recent holes confirmed that the South Extension, discovered by Kinross last year, is part of the Main zone. Accordingly, the zone now measures 600 metres in strike length and extends for 300 metres below surface.

Hole 65 returned the widest interval: 17.45 metres (starting at a down-hole depth of 6.6 metres) grading 11.8 grams gold per tonne. The highest grade, 52.3 grams, came from a 2-metre interval (starting at 125.35 metres) in hole 67. Other highlights include:

– hole 57, which cut 5.6 metres (starting at 27.8 metres) grading 10.6 grams;

– hole 59, which cut 7 metres (starting at 68 metres) grading 38.6 grams;

– hole 60, which cut 6.68 metres (starting at 304.5 metres) grading 13.8 grams; and

– hole 62, which cut 11.6 metres grading 18.6 grams grams (starting at 93.4 metres).

All the intersections represent near true widths. Several holes cut more than one intersection and contained visible gold.

Mineralization at Goose Lake occurs in several parallel zones surrounding a newly discovered fold nose that trends northeasterly and plunges moderately to the west. A close association with quartz veining in iron formation is apparent.

Another 21 holes were collared at outlying targets, though available results are unremarkable. Results for several holes are still pending.

An additional 3,200 metres of drilling are planned for the summer.

At the end of 2000, Kinross pegged Goose Lake with an inferred resource of 3.9 million tonnes grading 12.51 grams gold. The new holes were drilled updip and east of that resource outline, and the deposit remains open to the south and at depth.

Combined indicated resources in the other five deposits at George Lake top 2.6 million tonnes grading 9.95 grams. Another 1.3 million tonnes grading 10.11 grams are classified as inferred.

To date, Kinross, Wheaton and previous operators have spent more than $47 million at the George Lake project. Nevertheless, development remains hindered by high infrastructure costs associated with the Far North.

Meanwhile, the Costa Rican government has granted Wheaton’s Bellevista gold project various tax advantages and the right to quick, on-site customs inspections. The project is 20 km north of the Pacific port city of Puntarenas.

Bellavista centres on an epithermal gold-silver deposit with reserves of 11.2 million tonnes grading 1.54 grams gold per tonne. The deposit is expected to yield 60,000 oz. gold annually over more than seven years at a total cash operating cost of US$179 per oz.

Capital costs are estimated at US$28 million.

Wheaton River wants to hedge a significant portion of production at a price of no less than US$350 per oz. Therefore, a spot price of about US$295 per oz. is required before construction can begin.