Grade, tonnage up at David Bell mine

Additional tonnage at lower levels, an increase in the average width of mineable ore and better grades have pushed the calculated ore reserve to 8.15 million tons averaging 0.37 oz gold per ton, report joint owners Corona Corp. (TSE) and Teck Corp. (TSE).

The latest figures compare with reserves of 7.1 million tons grading 0.33 oz published a year ago.

The companies say the newly calculated reserves include 3.04 million oz of contained gold which is 28% greater than a year ago and 38% higher after taking into account the 204,000 oz gold produced by the mine during the 12-month period ending Sept 30.

These new reserves, the companies say, will extend the mine’s life to 18 years at current rates of production. The first gold bar was poured at the mine in 1985.

One of three producing mines at the Hemlo gold camp, the David Bell reported a production cost of $125(US) per oz during the 3- month period ending Sept 30. Mining operations are currently being carried out at the 4,600-ft level. Mill throughput at the mine during that quarter averaged 1,100 tons per day, with a recovery rate of 97%. Tabular sheet

Expansion of the ore reserves is exciting news for Corona and Teck; it is generally thought the David Bell deposit will be the first of the three producing operations at Hemlo, where the gold mineralization is believed to be fairly clearly defined, to be mined out. The 1985 annual report of Corona (then known as International Corona Resources) suggested visualizing the Hemlo orebody “as a large tabular sheet” which “is unusually uniform in grade and other mineralogical characteristics.”

Lowest cost producer at the Hemlo camp is the Golden Giant mine of Hemlo Gold Mines (TSE), which is controlled by Noranda Inc. (TSE). The mine reported a production cost of $109 per oz for the third quarter last year.

The third operation, the Page- Williams mine which was brought into production by LAC Minerals (TSE), reported a production cost of $185 per oz for the same quarter. The dispute over ownership of the mine is still before the court, the Supreme Court of Canada having yet to hand down a ruling on an appeal by LAC of a 1986 decision by the Supreme Court of Ontario awarding the property to Corona. (Should Corona win the appeal, it and Teck would operate the Williams mine on a 50/50 basis.)

In other news, Corona has increased its interest in the Renabie gold mine near Wawa, Ont., to 55%. Effective Jan 1, the company exercised its option to acquire an additional 5% interest for $1.16 million from joint venture partner American Barrick Resources (TSE).

The Renabie mine, operated by Corona, produced more that 38,500 oz gold in 1988.

A major North American gold producer, Corona has interests in 10 operating mines. Including output from the Williams mine, the company is expected to turn out about 625,000 oz gold this year at an average cost of about $200 per oz.

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