More gold produced at Siwash

Siwash North will probably never make the top-ten list of Canadian gold mines, but the British Columbian operation is proving to be a jewel box for owner Fairfield Minerals (TSE).

Situated near Merritt in the southeast, the project has no mill nor processing facilities. Instead, high-grade ore is shipped directly to smelters, most recently to Asarco’s smelter in Helena, Mont. The mine produced an impressive 26,000 oz. gold from 10,000 tons of open-pit ore during the third quarter ended Oct. 31. Costs, including corporate overhead, contract mining, and shipping and smelter charges, are expected to be less than $250 per oz.

Mining is focused on the narrow, high-grade Mother Shoot within the Siwash deposit, a mesothermal system. Gold mineralization is fine and exists largely in the free state. It is hosted by quartz veins and silicified granite containing 10-15% pyrite plus minor chalcopyrite and galena. Fairfield President John Stollery acknowledges that narrow-vein deposits are often viewed as tough to mine and that reserves are generally difficult to define. “I always remind them of the Leitch mine in Ontario, which started out with only about 15,000 tons of 1-oz. material,” he says. “The mine operated for 30 years, and produced 1 million oz. from 1 million tons.” Since mid-1992, the Siwash mine has produced more than 50,000 oz. gold from ore averaging 2.79 oz. per ton. This production exceeded drill-indicated estimates by a factor of two. Stollery is of the view that the original indicated total reserves of 215,000 oz. may be substantially increased as detailed surface and underground drilling progress. The deposit remains open for expansion along strike and at depth.

Fairfield resumed underground development in October, following completion of the open pit. The program includes a 1,300-ft. extension to the existing ramp, test mining in two areas, and diamond drilling to outline reserves at depth.

Fairfield is also exploring other properties in the district, including the Pen property where recent trenching exposed a vein discovery that assayed 1.4 oz. gold across a 1-ft. width. Visible gold was observed in another sample from this property. A 1995 exploration program will further evaluate these targets.

Fairfield reported net income of $2.8 million (or 39 cents per share) for the nine months ended Oct. 31. This figure includes the estimated proceeds from the sale of about 23,000 oz. gold. The debt-free company has working capital of $6.5 million.