Production possible by mid-1990: Yorbeau

Production at the Astoria property near Rouyn-Noranda, Que., could be 18 months away, the president of Yorbeau Resources (TSE), Karl Glackmeyer, told shareholders at the annual meeting in Montreal.

“We expect to be in a position to make our production decision in December, 1989, and to begin production at mid-1990,” he said, adding that a low-cost operation is anticipated.

The Quebec junior mining company last year struck a deal with Belmoral Mines (TSE) whereby the latter may earn a 50% interest in the property by investing $10 million. Glackmeyer said proceeds of the deal are being used to deepen the property’s main shaft to 1,683 ft, and to enlarge the shaft to accommodate a production volume of up to 1,000 tons ore per day.

Yorbeau also hopes to drift into the promising Aw zone at the seventh, eighth, ninth and tenth levels. The Aw zone, Glackmeyer said, raised the company’s diluted reserves by about 309,000 tons (averaging 0.2 oz gold per ton), to a total 1.4 million tons grading 0.18 oz.

Ore from the Astoria property will be milled at Belmoral’s Val d’Or, Que., facility.

Yorbeau and Belmoral have also agreed to a private placement which will net the former $5 million in additional working capital. In return, Belmoral received shares and warrants which represent up to a 50.6% interest in Yorbeau.

In a separate deal, Belmoral has agreed to invest up to $1.5 million, which would earn it a 50% property interest, in Yorbeau’s Vauper property located about 23 miles east of Val d’Or.