Queenston Gold Mines (TSE) holds a royalty interest on both properties. In 1988, LAC mined 21,235 tons of ore from the properties and produced 9,708 oz of gold. Queenston received royalty payments of $230,832 on the production. In 1987, Queenston received $206,156.
Queenston notes that in previous years, LAC did not calculate a possible reserve. The bulk of the possible reserves are in a new zone discovered by LAC last year. The zone is on the St Joseph property, below the 7,000-ft level west of the the No three shaft. According to Queenston, this is the furthest westerly indication of ore grade mineralization on the Macassa property.
On Queenston’s Kirkland West property, held under option by LAC, exploration is being performed from the 5,875-ft and 6,450- ft levels of the Macassa mine. Although the property hosts geology similar to that occuring on the Macassa mine claims, ore grade mineralization has yet to be found, Queenston says.
To the end of January, LAC has completed 2,028 ft of underground development, including 1,248 ft of drifting on the 04 break — the primary target for gold mineralization on the property. LAC has also completed 1,309 ft of drilling. LAC can earn a 65% interest in the claims by completing 5,000 ft of development work and 15,000 ft of drilling by January, 1991.
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