Lac Moves on Jonpol project

Trucking of ore from a Garrison Twp., Ont., property to the Macassa mill in Kirkland Lake will be considered by Lac Minerals (TSE), a Lac spokesman tells The Northern Miner. The operation is contingent upon the completion of additional exploration work and an engineering feasibility study. The claims are currently held by Jonpol Explorations (TSE) and affiliate T & H Resources (TSE).

Under the terms of the proposed deal, Lac will have the right to earn a 50% interest in the property by paying Jonpol and T & H $1 million. After both companies have completed their current drill program, Lac will have the option of paying an additional $1.5 million and spending $5 million on follow- up exploration by 1990 in order to earn its interest. Also, Jonpol and T & H will earn a 50% interest in Lac’s property which adjoins their property to the west.

A real plus for the Jonpol companies is the Macassa mill, which has a capacity for 600 tons per day. Located 25 miles to the southeast, the Macassa precludes the need for capital expenditures on mill construction. Also, Lac will carry both companies to production, but will have the right to recoup 50% of any mine capital expenditures from operating profits before having to share cashflow with Jonpol and T & H.

“This deal is going to move a lot faster than expected”, Jonpol president John Pollock tells The Northern Miner. With two drill rigs in operation, Jonpol plans to get another two rigs on site shortly. This is required in order to complete the planned 90,000 ft of drilling by Aug 31 — a completion date designated by Lac. (Thereafter, Lac has 60 days to review the data before committing to another property payment of $1.5 million and exploration expenses of $5 million.)

According to Pollock, total drill- indicated reserves stand at one million tons grading 0.23 oz gold per ton to a depth of 1,000 ft. These reserves are divided among three adjacent properties which straddle a 2.5-mile section of the Destor- Porcupine and Munro faults which strike across the area.

Some of the best results have come from the Garrcon property shared by Jonpol (40%), T & H (40%) and Coastoro Resources (VSE) (20%). The latter company is being merged into Jonpol. Earlier this year, one hole intersected a 20-ft true width grading 0.95 oz.

If the project becomes economically viable, Lac has proposed to make available its old Macassa mill. The mill is being replaced by new mill this summer. The old mill could handle Garrison rock and has operated at a rated re covery in excess of 95%.