Nuinsco hires J.M. Slack to look at Cameron study

Mining consultant Malcolm Slack has agreed to pick up where Echo Bay Mines (TSE) left off in a push to bring Nuinsco Resources’ (TSE) Cameron Lake gold property into production.

Slack was named chairman of the Nuinsco board after Echo Bay sold its 53.8% interest in the company to Deak International of Toronto for $6.6 million.

He told The Northern Miner that he will spend the next few weeks looking over an Echo Bay sponsored pre-feasibility study (conducted by Wright Engineers) which concluded that the northwestern Ontario gold deposit is uneconomic at a gold price below $550(US) per oz.

Echo Bay’s projections are based on a 500-ton-per-day milling rate and a mineable reserve inventory which stands at 788,000 tons at a fully diluted grade of 0.194 oz gold per ton.

While Slack and Nuinsco President Doug Hume refuse to speculate on Echo Bay’s decision not to continue the study, they are convinced that capital and operating costs can be reduced and that additional reserves can be developed in the area.

In its study, Echo Bay concluded that the 4- to 5-year life span that current reserves will support is not enough to generate a sufficient return based on estimated capital costs of $30.5 million.

As a former vice-president development with Noranda Minerals, Slack optioned the properties to Noranda back in 1972 and he claims to be familiar with the area.

“Doug obviously thought I was the appropriate person to take a look at the project,” said Slack. He says he is confident that a positive feasibility study will be produced “in the near term.”

When Deak International resumes the feasibility process at Cameron Lake, top priority, will be to look for more ore below the 800-ft level. Plans are in progress to extend the underground ramp from the 685- to 850-ft levels and to conduct deeper and on-strike diamond drilling at Cameron Lake and nearby Monte Cristo.

“A decision to proceed with production could be made by the end of March, 1989, with production to commence by the end of 1989, said Hume. A group of five Nuinsco directors nominated by Echo Bay have tendered their resignations and they will be replaced by Deak nominees.