Vancouver — An independent resource estimate at
The news bodes well for for
The Island Gold property is in the Michipicoten greenstone belt, along a regional east-west-trending structure that extends to Kirkland Lake and parallels a similar structure that runs between the Timmins and Hemlo camps.
The estimate, by Roscoe Postle Associates, is based on diamond drilling performed in September 2004. Patricia and Richmont had hoped to outline 500,000 tonnes averaging 8 grams gold per tonne, or 165,000 contained ounces, sufficient to support three years of production at the daily rate of 650 tonnes.
The estimate, which is compliant with National Instrument 43-101, points to an indicated resource of 272,000 tonnes averaging 12.3 grams gold per tonne, or 108,000 contained ounces. In calculating these figures, Roscoe Postle used a cutoff grade of 75 grams gold per tonne for high assays. There are also, at the same cutoff, 116,000 oz. gold contained in 275,000 tonnes averaging 13.1 grams gold in the inferred category. The overall resource is based on a cutoff of 6 gram gold, a gold price of US$400 per oz., and a gold recovery of 94%.
The revised resource estimate encompasses five sub-parallel zones namely, C, D, D1, E and E1.
Results from underground drilling showed good vertical and horizontal continuity open to depth, and most of the drill holes contained visible gold and numerous high-grade sections. Zones C and D contain intersections ranging from 1 to 5.4 metres, with hole 7 returning 1.9 metres of 77.18 grams gold per tonne. Zone E1 had intersections ranging from 1.1 to 2.9 metres, with hole 9 returning 2.9 metres of 50.34 grams gold.
An interim underground drilling program is now targeting areas below the resource and should be completed in January.
Richmont has 90 days in which to decide whether to bring the mine into production or spend $10 million to acquire its interest in the property.
The Island deposit is one of several mineralized zones in the boundaries of the Island Gold project, which covers some 22.3 sq. km. The Kremzar, Lochalsh and Goudreau zones have additional mineral resources, which were not included in the latest resource estimate. Patricia has a 100% interest, subject to royalties, in all the properties except Goudreau, in which it holds 53.4%.
Exploration has focused on the northeast-trending Goudreau Lake deformation zone, which is dotted with several former gold producers in the Michipicoten greenstone belt. The area last saw major activity in the late 1980s, when Canamax Resources (now defunct) built and operated the underground Kremzar mine. Operations were halted in 1990, after less than two years, by which time Kremzar had produced 46,000 oz. gold with a head grade of 4.7 grams gold. The deposit was mined to a depth of 240 metres, leaving 350,000 tonnes of reserves on the books.
In early 2002, inferred resources were pegged at 20.6 million tonnes grading 2.35 grams gold, or 1.6 million oz. gold, at a cutoff grade of 0.75 gram gold per tonne. The estimate, which is compliant with NI 43-101, includes the Lochalsh, North Shear and Centre zones over a 2-km segment in the southern portion of the property to an average depth of 250 metres. The Kremzar mine also has 181,944 tonnes grading 6.27 grams gold in the proven and probable category, plus 85,952 tonnes grading 8.67 grams gold in the possible category, though these are old reserve estimates not compliant with NI 43-101.
Near the former Kremzar portal, which has been blocked, sits a mothballed, 650-tonne-per-day carbon-in-pulp plant. Patricia says restarting the mill and the Island Gold mine could be achieved within 18-24 months at the annual rate of 55,000 oz.
Mine facilities include a mill, a crusher, and a ball mill, and the company is considering adding a Knelson concentrator to recover the coarse gold.
Be the first to comment on "Patricia, Richmont update Island Gold resource"