Vancouver-listed Major General Resources intends to mine the Rumbullion and Hammerdown zones as one deposit within the Rendell-Jackman gold property near Springdale, Nfld.
The announcement follows confirmation that five veins which comprise the Rumbullion zone host an in situ reserve of 122,490 tonnes averaging 24.62 grams per tonne.
The reserve was calculated using a minimum block grade of 7 grams and an assay grade cut to 100 grams per tonne.
The Rumbullion, which outcrops on surface and goes to a depth of 175 metres, is near the Hammerdown deposit, which hosts 440,000 tonnes grading 16.91 grams.
Major General expects to spend $3.1 million on underground confirmation drilling and bulk sampling of the Hammerdown, to be followed by preproduction development.
When in full production, ore will be mined at a rate of 450 tonnes per day, to yield 75,000 oz. of gold annually at a cash cost of US$131 per oz. Major General describes itself as one of Canada’s most active exploration companies. Last year’s expenditures of $3 million were split 30% on gold, 20% on base metals and 50% on diamonds. The company’s partners provided two-thirds of these funds, which were spent in five provinces and two territories.
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