Malartic mill near completion at Congress gold project

Construction of the mill at the Congress gold mine project in Arizona is 95% complete and the first gold should be poured by about the first of July, Marc Henderson, president of Malartic Hygrade Gold Mines (Canada) (VSE), said at the annual meeting in Toronto. The property, acquired last year from Echo Bay Mines, will turn out 30-32,000 oz. gold per year, Henderson said. The mine, a producer at the turn of the century, has estimated reserves (including tailings and ore classified in the possible category) of more than one million tons grading 0.18 oz. gold per ton. The Niagara vein alone contains an estimated 492,450 tons grading 0.29 oz.

A 10,000-ft. surface drilling program was started up in January to probe for additional reserves.

The mill, being built at a budgeted cost of US$4.4 million, will operate at a rate of 350 tons per day.

In northwestern Quebec, Malartic is hoping its Orion mine project near Val d’Or will provide needed reserves. The company is currently in partnership with American Barrick Resources (TSE) at the nearby Malartic/Barrick mine; Barrick mills ore from both of these mines at its Camflo gold-mining project, adjacent to the Malartic/ Barrick mine.

Camflo, which celebrated its 25th year of operation in 1989, has 2-3 years of reserves remaining, Henderson said.

The upper portion of the Orion mine is 100% owned by Malartic and is run as a 300-ton-per-day satellite operation. Reserves on the property developed below 650 ft. are covered by Malartic’s 60/40 profit-sharing agreement with Barrick. (Malartic retains a 60% interest; the Malartic/Barrick mine is covered under the agreement.)

As part of its exploration program, Malartic is driving a drift, which will exceed 6,000 ft. in length, from the 1,500-ft. level of the Malartic/Barrick mine to the Orion “deep” deposit.

Malartic, which recorded a net profit last year of almost $600,000, produced 20,015 oz. gold in 1989 at an operating cost of $341 per oz.