A public financing of $8.1 million has been arranged by Lyon Lake Mines (ME) to fund exploration at the company’s Belleterre and Mosquito gold properties.
After spending $4.5 million to explore the two properties, the company said it could commit itself to a commercial production decision at Mosquito as early as next spring.
Meanwhile, Lyon Lake is planning to conduct underground exploration work on the Mosquito property in British Columbia where the existence of a 5,000-ft limestone band has already been indicated.
A 50%/50% joint venture involving Lyon Lake and Mosquito Consolidated Gold (VSE), the Mosquito property comprises two former producers called the Island Mountain and Mosquot Creek mines.
According to Lyon Lake, the recently discovered geological formation is parallel to the Aurum limestone band which supported some 600,000 oz of gold production at the Island Mountain and Mosquito Creek mines before they closed down in 1962. Closure was due to low gold prices.
As part of the underground program, Lyon Lake is planning to complete two adits. One of them is being driven into the new limestone band and according to Lyon Lake it has already intersected an old Island mine drift.
By intersecting the drift, the company will be able to undertake an inventory of on site reserves where average grades during the last eight years of production had been 0.7 oz gold per ton.
Underground drilling, which is scheduled to begin this month, is designed to test the limestone band.
A bulk sample was scheduled to be extracted from the Belleterre property near Temiscamingue Lake where Lyon Lake is involved in a 50%/50% joint venture with Audrey Resources (TSE). But results from Belleterre haven’t been made available yet.
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