MinVen finds potential for new structure at Blackdome

Preliminary results from a recent drill program at the Blackdome gold mine near Clinton, B.C., has owner MinVen Gold (TSE) optimistic it may have discovered a new high-grade oreshoot. The encouraging results from ongoing exploration at the property were encountered at the end of March, some six days after the company decided to write down the carrying value of the mine. At the time, MinVen said the decision to take the pretax $17.4-million writedown was the result of a significant decline in the grade of ore being mined.

The encouraging new exploration results — said to be typical of historical high-grade zones at the mine — were first encountered in hole 730 where an intercept averaged 51.3 oz. gold over a true width of 1.3 ft. The intercept is believed to represent an unexplored vein, No 18, 325 ft. east of and subparallel to Blackdome’s main ore-bearing structure.

MinVen said drill results of 15 holes drilled to April 24 (including hole 730) “suggest the presence of a high-grade oreshoot.” Drilling is continuing.

Although the limits of the new discovery have yet to be defined, the company says the preliminary reserve estimate of the new oreshoot is 29,000 tons averaging 0.60 oz. gold per ton. A drift being driven along the No. 18 vein is reported to have returned assays averaging 0.99 oz. over an average true width of 5 ft. and a length of 138 ft.

“We are very pleased with the preliminary results of this drilling program,” stated President James Anderson. “While we still have a lot of work to do, we believe these results reinforce our faith in Blackdome.”

Anderson said Blackdome’s ore has been mined from 12 similar shoots, averaging about 20,000 tons each, scattered along a steeply inclined structure for a distance of about 1.5 miles.

The 200-ton-per-day Blackdome mine may be small as mining operations go, but it is viewed as one of British Columbia’s most successful producers. Since the start of production in 1986, it has processed a total of 309,103 tons of ore with an average grade of 0.66 oz. When production started, proven and probable reserves were stated as 131,515 tons averaging 0.61 oz.

Finding new reserves has, however, always been a challenge for the mine’s operators.

“The ore is very difficult to identify and outline by diamond drilling due to the small size of the shoots and irregular internal distribution of metal values,” explained Anderson. “For this reason, considerable exploratory drilling, drifting and raising will be required to test the full potential of the new No. 18 vein.”

The mine is still operating with lower grades than in previous years but Anderson said the new information “sheds a more positive light on Blackdome.”

MinVen has interests in five operating mines in the U.S. and Canada. The Denver-based company recently announced it planned to sell its one-third interest in the Golden Reward heap leach gold mine near Lead, S.D.