Mill tune-up phase begins at Mark V bet

The first of several test milling runs was recently completed at Mark V Petroleums and Mines’ (VSE) Bagdad gold property near Philipsburg, Mt., where the Vancouver company is tracking a number of high grade vein systems.

Located on US Forest Service land, the 1,760-acre property is expected to produce about 50,000 oz gold and 184,000 oz silver in its first year in production.

The Mark V committed itself to a production decision when reserves stood at 278,841 tons of grade 0.6 oz gold per ton, but President Leslie Hart has said that he expects Bagdad reserves to increase as work progresses.

While the company is still tuning up the operation, average recoveries in excess of 90% have indicated to Mark V that the Bagdad ore is amenable to standard flotation milling methods, the company said.

Back in May, Mark V started work on a 3-compartment, 200-ft raise in one of the high-grade vein systems. More recently, Mark V mining crews started a second raise near the first high grade zone on the eastern end of the south vein drift. Previous sampling there confirmed a 136-ft high-grade shoot which averaged 1.3 oz gold per ton.

Selected stoping of the high- grade ore is expected to begin soon and the material is scheduled to be sent to the mill for a second bulk test.

Crews are also extending intermediate drifts from the existing raise to develop high-grade ore. Future plans call for blending higher grade ores produced in both working areas, according to Mark V.