Inco’s first gold mine opens

While pouring the first gold bar from the East zone of their Golden Pond project in the Casa Berardi region of northwestern Quebec, Inco Gold and Golden Knight Resources (TSE) announced drill results from another part of the same large property that could substantially increa se ore reserves for the mine.

The new gold mine is the first brought into production by giant nickel miner Inco Ltd. (TSE) and the first in the Casa Berardi region. It is expected to turn out 17,000- 18,000 oz gold during the remainder of 1988, and 60,000 oz during calendar year 1989. Sufficient reserves are expected to be uncovered to allow for an annual output of 120,000 oz.

Current property reserves (all zones) stand at about 11.7 million tons averaging 0.22 oz gold per ton. Inco Gold, the operator, has a 60% interest in the project, and Golden Knight a 40% interest.

The $75-million gold mine and mill, located about 60 miles north of here, was officially opened by federal minister of energy, mines and resources Marcel Masse. Directors and officials of Inco, parent firm of wholly-owned Inco Gold, and Golden Knight, whose major shareholder is Teck Corp. (TSE), as well as representatives of the federal, Quebec and regional municipal governments, attended the opening. The Northern Miner visited the property just days before the opening. West zone drilling

The latest exploration find is located on the property’s West zone, about three miles from the East zone mine. First results released contained high grade intersections from two holes, 0.85 oz over 83 ft and 0.86 oz over 50.5 ft on the 650-ft level in an area not previously tested by surface drilling.

Then, on the day of the official opening, the companies released results from five additional holes, one of which was drilled 70 ft below 650 ft and which cut 1.16 oz over 53.3 ft. Two holes drilled to the west on the 650-ft level intersected 0.19 oz over 21 ft and 0.12 oz over 21.7 ft. Another hole to the east returned minor values, while a hole drilled to intersect the new area 100 ft above 650 ft returned low values in a fault zone.

Strike length is estimated to be about 275 ft; the companies say further drilling to the east will be necessary to determine an exact length.

The new exploration area is not easily accessible from existing underground workings, the companies report. A drift on the 650-ft level will be extended to provide drilling stations for better access to the newly discovered area.

Because of the encouraging results from the underground drilling and bulk sampling from the West zone, the companies have approved further underground exploration which will involve extending the ramp and carrying out drifting and drilling on either the 820-ft or 980-ft level. Estimated cost of this new work is $8 million. Ramp serves 5 levels

Back on the East zone, where a ramp has been built to provide access to five levels, the deepest of which sits at 650 ft, the mine start-up production rate is about 880 tons of ore per day. The mill has current crushing-milling facilities to process about 1,320 tons per day, and can be expanded to handle daily throughput of about 2,000 tons.

The mining method is mechanized cut-and-fill; ore haulage is with 43-ton trucks.

Exploration of the area by Inco began in 1957, when electromagnetic surveys were undertaken. Further air surveys took place in 1966, 1969 and 1980. The first ground geophysical survey was carried out in 1974 and 12 claims were staked. By 1980, Inco held 880 claims stretching more than 24 miles in length and crossing the border into Ontario.

In 1983, agreement was reached with Golden Knight whereby the latter could earn a 40% interest in the property by funding further exploration. Drilling had identified three zones by the end of 1984, the East and West zones, and the discovery zone, the Main, which awaits further exploration.

Discovered by Inco geologists in 1981, the Casa Berardi deposit was named “G olden Pond” after a popular movie at that time. La Sarre base

The Golden Pond East mining operation employs 120 people, including 51 miners. Most of the workers were hired from the region and commute to the site from La Sarre area in vans purchased and maintained by the company. The last 40 miles of the roadway leading from La Sarre to the mine site is unpaved.

Senior mine geologist Francis Clouston said no visible gold exists at the East zone, although the high grade areas being encountered at the West zone do contain visible gold. The East zone mineralization is finely disseminated, and open both laterally and at depth, he said. Initial mining of the deposit commenced on the 575-ft level.

The mine’s milling facility, which is not computerized, is a 4-man operation and features a carbon-in- leach recovery circuit. The gold dore bars produced will comprise 90% gold, 8% silver and 2% impurities. An operating cost of less than $300(C) per oz is anticipated.

Of the West zone and the latest drilling results there, mine manager Aurelio Petracchi said the exploration work “is confirming our enthusiasm for Casa Berardi.” While Inco has been active at Casa Berardi for several years, he said the area’s potential has not yet been fully realized. Petracchi said only about 25% of Inco’s 880 claims in the area have been explored, and some of those only superficially.

Formed in 1987, Inco Gold is moving aggressively to become a major gold producer. Next projects likely to be given the go-ahead include a gold mine in Montana (with partner Homestake Mining) and at Crixas, Brazil, where Inco has a 50% interest.

By 1991, Inco Gold estimates its share of gold production from various projects will total 115,000 oz, and by the mid-1990s it hopes to have increased that output to 400,000 oz per year.