A preliminary evaluation of the Hammerdown gold deposit in Newfoundland recommends underground trackless mining with shrinkage stoping.
The deposit, which forms part of the Rendell-Jackman property, is owned by Major General Resources (VSE).
A flotation processing circuit is also called for.
The evaluation is based on a geological reserve estimate of 425,000 tons averaging 0.48 oz. gold per ton. At 400 tons per day and a gold price of US$385 per oz., the mine could generate 50,000 oz. annually and recover the estimated capital costs of $22 million within two years.
Follow-up studies will examine alternative mining methods and production rates.
Soon to get under way is a $200,000 surface drilling program to test exploration targets. Underground work will follow, in an attempt to confirm grade and continuity of mineralization.
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