Manitou tailings could be profitable: study

Private company Gold Spinners International has earned a 20% net profits interest in the Val d’Or, Que., project. Louvem’s parent company, Montreal-based St. Genevieve Resources (TSE), also holds a 27.2% net profits interest.

Although a recent pre-feasibility study on the project says it could be operated profitably, Louvem may be required to construct a second tailings dam to host toxic waste material. That would prevent operator Gold Spinner from starting production for about five months.

The study was conducted by Montreal consulting firm SNC Inc. on about 6.8 million tons of tailings material with an average grade of 0.02 oz gold per ton, 0.34 oz silver, 0.07% copper, 0.07% lead and 0.36% zinc.

As part of the study, SNC reviewed a conceptual mining plan, development of a process flow sheet, and a financial analysis to determine the economic viability of the project.

Based on recent metal prices (including $373.75(US) per oz gold, $5.30 per oz silver, $1.15 per lb copper, 30 cents per lb lead, and 76 cents per lb zinc), the payable value of the Manitou tailings is $7.45 per tonne.

At a capital cost of $7.6 million (C), Gold Spinner could process the tailings using four 1,000-ton- per-day column flotation units to produce a 23% concentrate, according to St. Genevieve President Thom Robinson. “We hope to develop copper, gold and separate zinc concentrates by circumventing the cyanide circuit,” he said.

If the joint venture manages to do so, capital costs would be reduced substantially while revenues would stay the same, according to the pre-feasibility study.

As reported (N.M., May 15/89), previous studies at Manitou were conducted by the Centre de Recherches Minerales in Quebec City and the New Brunswick Research and Productivity Council of Fredericton, N.B.

A final report is now being prepared.

]]>