Inco to spend $6.5 million at Snow Lake

Drilling has extended the Dick and Ruttan zones for 500 ft below the 1,780-ft level — the deepest working level in the mine, near Snow Lake, Man. High River Gold Mines (TSE) is the property owner. Inco Gold has the right to earn a 50% interest.

The zone extensions and a new discovery known as the Ruttan Extension, remain open along strike and at depth. One of the better holes completed in the new zone intersected 44.9 ft grading 0.379 oz gold per ton. The true thickness was 17.1 ft. Another hole in the same zone intersected 29.6 ft assaying 0.234 oz gold.

A review of mine data combined with the new results by Inco has enabled the partners to calculate drill-indicated reserves of 2.7 million tons grading 0.149 oz gold to a depth of 2,300 ft. Results from drilling below the 1,780-ft level suggest that grades are actually 10% higher than the average historical grade.

An examination of several plan and cross sections by The Northern Miner, revealed strong widths in the Ruttan and Ruttan Extension zones. Drilling of the zones is conducted from a crosscut driven from the 1,780-ft level.

The good widths are a key reason why both partners feel the Snow Lake mine, if reopened, would be a low cost producer. Preliminary estimates suggest a cash operating cost of $250 per oz, High River says.

Upon completion of the exploration program, Inco plans to complete a feasibility study which could lead to a production decision by July. Production at a rate of 60,000 oz per year could begin as early as mid-1990, James Clucas, executive vice-president of High River, told The Northern Miner.

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