The Beaverlodge gold area of northern Saskatchewan is the current focus of exploration attention of Lenora Explorations (TSE), President Robert Kasner said at the annual meeting.
A feasibility study is currently being undertaken and should be completed this fall, at which time it is expected a decision on production will be made, Kasner said. Estimated cost to bring the project into production is $60-$70 million.
Of particular interest at the Beaverlodge project, the company reports, are two large tonnage, open- pit zones, the Box and Athona. Lenora has a 30% interest in the Box, as does its sister company, Mary Ellen Resources (VSE), while Cominco Ltd. (TSE) holds the remaining 40%. The Athona deposit is 50/50 partnership between Lenora and Mary Ellen.
Lenora reports a recent intersection of 101.4 ft (true width) of 0.3 oz gold per ton at the Beaverlodge project.
Raising the funds to bring the Saskatchewan project into production is not easy, Kasner readily admits. The October, 1987, market collapse has not helped. Kasner said Lenora is assessing a number of alternatives, including amalgamations with other companies within his group.
In northern Ontario at the Harker-Holloway gold camp, Lenora has three exploration projects under way, one of which, the Golden Harker, is 100% owned by Lenora. The Golden Harker property contains old mine workings. Another exploration project is the 50/50 Lenora-Canico (Inco) joint venture.
The third project is a joint venture involving American Barrick Resources (TSE); Lenora has a 35% interest and Barrick 65%. While the two companies entered into an exploration agreement for the property, they have been unable to agree on a production deal.
Barrick recently started up production at its Holt-McDermott gold mine located on adjacent property. (The official opening is set for the first of August.) The mine is expected to turn out 30,000 oz gold this year; output in 1989 is expected to be 80,000-90,000 oz, at an estimated cost of US$220 per oz. Current mill capacity is 1,500 tons per day.
Lenora currently has about 12.6 million shares outstanding. The company reported a deficit of $962,327 at the end of 1987.
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