This year’s exploration and predevelopment work on the Brewery Creek gold property, east of Dawson City, Y.T., is nearing completion.
The 1994 program, carried out by owner Loki Gold (TSE), was designed to identify additional oxide reserves amenable to heap leaching. In addition to carrying out structural mapping, Loki collected 5,500 soil geochemical samples, performed 1,960 metres of trenching, and drilled 235 reverse-circulation holes (for a total of 11,000 metres).
As a result of infill drilling on the Blue, Canadian and Lower Foster deposits, Loki anticipates an increase in reserves, especially the grade of the Blue zone. Exploratory drilling was carried out on new targets and along strike of eight near-surface deposits.
A positive feasibility study, completed earlier this year, confirmed the economic viability of an open-pit, heap-leach operation. Previous drilling outlined geological reserves of 18.2 million tonnes grading 1.55 grams gold per tonne. Based on a 0.5-gram cutoff, diluted minable reserves are estimated at 16.7 million tonnes grading 1.48 grams, with a stripping ratio of 1.2-to-1. Startup is planned for August, 1995.
Predevelopment work to date includes initial construction of the leach pad and process ponds. Road access to the mine site has been upgraded, and water and sewer lines have been installed.
The permitting process is under way and the company’s Water Board Application will be submitted shortly. Also, the federal government is expected to review the initial environmental evaluation by mid-November, and an economic accord is being negotiated with the Dawson Indian Band.
Significant results from this year’s drilling of the Blue zone are as follows: Hole Location Interval Width Gold
(metres) (metres) (metres) (grams/tonne)
RC94-875 18,549E 0-4 4 4.32
38-50 12 3.29
RC94-878 44-56 12 3.19
RC94-879 50-60 10 5.51
RC94-873 18,500E 02-34 32 5.31
including 14-22 8 15.86
RC94-874 04-42 38 2.02
including 22-28 6 6.58
RC94-865 18,443E 00-50 50 4.07
including 22-44 22 8.27
RC94-866 02-34 32 1.85
including 04-16 12 3.14
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