Inco Gold prepares to open first mines

Not yet a year old, Inco Gold is already gearing up to open its first gold mine in September, in the Casa Berardi area of Quebec. Then in 1989, two more mines are planned to come on stream, one in the U.S. and the other in Brazil.

All are on track,” Inco Gold’s director of exploration for Canada, Richard Worsfold, said of the three projects which for the moment top the list of the more than 50 precious metals ventures and prospects being pursued by the wholly-owned unit of Inco Ltd.

Formed in August, 1987, to look after the nickel giant’s exploration and development activities pertaining to gold and other precious metals, Inco Gold is projecting its share of gold production will be 115,000 oz annually by 1991 from the three properties mentioned above. By the mid-1990s, the company is hoping to produce 400,000 oz gold per year.

And not forgetting other precious metals, Worsford said Inco Gold is currently evaluating three or four platinum properties.

The Inco unit spent $9 million developing the three gold projects last year in conjunction with its partners, and plans to spend another $40 million in 1988.

At the Golden Pond project in Casa Berardi, where Inco Gold has a 60% interest and junior Golden Knight Resources a 40% interest, development has been focused on the East deposit. To date, about 10 million tons of reserves averaging 0.22 oz gold per ton have been delineated by drilling along a 3-mile strike length. Ramp work

At the Golden Pond West deposit, a ramp being driven has reached almost 660 ft in depth, where lateral development of 4,200 ft is planned. Underground drilling representing about 41,000 ft is scheduled. Also included in the $7-million program is a 12,000-ton bulk sample.

Inco Gold also has planned for this year a $2-million surface drilling program for other areas of the Gold Pond property. While an initial production rate of 60,000 oz gold is projected for Golden Pond, the company is hopeful of outlining enough reserves to support an annual output of 120,000 oz.

At the Jardine project in Montana, Inco Gold’s 50/50 partner is Homestake Mining. Reserves of more than one million tons averaging 0.33 oz are indicated there. A mill designed to treat 150,000 tons of ore annually is expected to turn out 42,000 oz gold per year.

And at Crixas, Brazil, more than 7.7 million tons of reserves have been outlined grading 0.34 oz. Inco Gold has a 50% interest in the project, which is expected to treat almost 400,000 tons of ore per year yielding about 120,000 oz gold annually at peak production. International program

In addition to its exploration work in Canada (from Newfoundland to British Columbia, and in the N.W.T.), the U.S. (in the southwest and Alaska) and Brazil, Inco Gold also has projects on the go in Indonesia. Exploration expenses world-wide of $18 million were claimed for 1987, and this year the company has budgeted for expenditures of about $29 million.

Not included in Inco Gold’s projected output figures are the ounces of gold and other precious metals Inco Ltd. produces as byproducts of its nickel-copper ores. In 1987, the parent firm turned out about 47,000 oz gold, 130,000 oz platinum, 160,000 oz palladium and 1.4 million oz silver, among other metals, from its various operations.