Pioneer aims to reactivate Puffy Lake

Success eluded Pioneer Metals (TSE) the first time it attempted to bring the Puffy Lake mine to production. But, armed with a new operating plan, the company is taking steps to reactivate the former producer, situated near Sherridon, Man.

Puffy Lake poured its first gold in late 1987. However, operations were suspended in less than two years because of production shortfalls and financial problems.

Previously, Pioneer operated the mine with a partner. Today, it owns the mine outright, and its reactivation plan will emphasize grade control and selective mining as recommended in a 1993 feasibility study.

The plan will proceed in three stages, the first of which will involve test-mining of a bulk sample at a cost of $1.5 million. This phase is expected to last 3-4 months.

A new decline will be driven into the North Zone, where 5,000 tonnes will be extracted and tested. The zone, discovered in 1986, is described as higher-grade and thicker than the area mined in the previous operation.

In 1994, infill drilling was carried out in the area of the North zone to select the best target for the test- and bulk-mining program. This 8-hole program infilled historic 30-metre centres to 15 metres, and confirmed continuity of all four known zones. The values returned were similar to those received in past drilling, although a 3.4-metre intercept graded 50.39 grams gold per tonne.

Pioneer says this intersection “confirms the choice of this orebody as the target for collaring a decline.” The zone is also nearer to the mill than other areas previously mined.

Once the bulk-sampling program is completed, Pioneer intends to make a production decision and proceed with the next two phases at a cost of $5 million. These phases are scheduled to take 4-6 months to complete.

Phase 2 will consist of a $3.5-million underground development program, while the final phase will involve rehabilitating the existing 1,000-tonne-per-day mill and other surface facilities.

The costs of reactivating Puffy Lake are based on contract mining rates.

The project has a mineral inventory of 1.3 million tonnes grading 8.57 grams per tonne (proven and probable), containing 340,200 oz. gold.

Puffy Lake also hosts an additional possible reserve of 883,700 tonnes grading 7.15 grams (203,200 oz.).

Minable reserves, calculated by an independent firm, total 855,000 tonnes grading 6.7 grams gold. This calculation represents only proven and probable reserves near the new decline and mill. Pioneer believes the mine life could be extended by eventual mining of the remaining resource, as well as through ongoing exploration programs.