Placer, MSV ponder production decision for Eastmain bet

The Eastmain gold project in northern Quebec could be in production late in 1989 should the results of a final feasibility study prove favorable, partners Placer Dome (TSE) and MSV Resources (ME) report.

The final study is to be completed by the end of September. The companies say they have approved a revised 1988 exploration program costing $3 million to allow the study to be completed. Most of the work program consists of further definition drilling on the B zone to provide a final reserve estimate.

Surface and underground exploration carried out during the past year better defined the property’s A and B zones. Late in 1987, the A1 and A2 zones were shown to be parts of a single lens. Drilling also indicates the same may be true for the B1 and B2 zones.

Preliminary reserve estimates completed on the B zone indicate an increase of 7% in over-all gold content compared with previous estimates, the companies say. Tonnage has been reduced but higher grades were encountered.

Among the better preliminary winter drilling results were the following: Hole Width Grade

(ft) (oz/t) 332-016 11.9 1.81 332-032 14.8 1.28 332-045 29.4 1.79 332-058 12.9 0.53 332-059 9.5 0.69

The companies were previously reporting reserves of more than one million tons grading 0.45 oz.