Production rising at Eagle River

With problems at its leased mill cleared up, River Gold Mines (TSE) is forecasting capacity production in 1996 from its Eagle River mine near Wawa, Ont.

Gold was first poured in October, just 18 months after River Gold acquired the property. The Magnacon mill — an existing facility 17 km away from the mine — had started processing stockpiled ore in September, but only after a longer-than-anticipated refurbishing period.

“I thought the old mill would take only a month to get into production, but it took almost two months to get it into really good shape,” River Gold President Conrad Hach tells The Northern Miner. “There are no more problems with the mill now, and it’s going at almost full capacity.”

Production for 1996 is expected to reach 45,000 oz.

The total amount mined at Eagle River in 1995 was 65,925 tonnes. But of that amount, only 28,571 tonnes were milled, owing to mechanical and operating deficiencies at the mill itself.

The mill produced 9,652 oz. in 1995, for a recovered grade of 10.51 grams per tonne. A 95% recovery rate was achieved.

“We’re happy with the grade,” Hach says.

A total of 3,087 tonnes grading 10.7 grams gold per tonne was obtained from low-cost, surface mining. Surface exploration work indicates a potential to produce 10% of annual production from surface, thereby significantly reducing average mining costs.

For 1996, River Gold projects a mill head grade of 12 grams gold per tonne from 120,000 tonnes of ore. Cash operating costs are estimated at US$230 per oz., with capital and exploration expenditures of $4.6 million.

“There are a lot of known zones, which we expect will enable us to increase our tonnage,” Hach says.

Underground and surface exploration in 1995 led to the recogition of new reserves at the No. 6, West and HP zones. Stope definition drilling below a depth of 100 metres was 60%. It was halted at year-end but will resume in March. Results to date indicate that mined tonnage will be replaced.

Reserves at Eagle River are 816,000 tonnes grading 14.1 grams gold per tonne, although Hach says that figure will be revised in February. The new total will include reserves found at the new West zone, where, Hach says, the best hole of the 1995 program was drilled.

Elsewhere, River’s 51%-owned subsidiary, Moss Lake Gold Mines, has started a 15,000-ft. drill program on its wholly owned Moss Lake property in Shebandowan, Ont. Drilling will continue throughout the winter, targeting known zones and their extensions.