Rea Gold boosts reserves at Bissett

Vancouver-based Rea Gold (TSE) has seen geological gold reserves increase at its Bissett mine, about 160 miles northeast of Winnipeg, Man.

Geological reserves at the former producer are now estimated at 3.6 million tons grading 0.282 oz. gold per ton, which translates into 1 million ounces of contained gold. The calculation is based on a 0.15-oz.-per-ton cutoff and a minimum 5-ft. mining width. All gold grades over 1 oz. are cut to 1 oz.

Of the total reserves, 551,339 tons grading 0.217 oz. exist above the 26 level, although the bulk of reserves, 1.6 million tons of 0.295 oz., are between levels 27 and 33. The remainder, 1.4 million tons grading 0.282 oz., are between levels 34 and 37.

The Bissett deposit is still open for exploration along strike and downdip of the existing proven zones, and the company believes the ultimate geological reserves for this property down to level 37 could exceed 1.4 million oz.

Rea Gold, which currently produces gold from its Nevada operation, expects output from Bissett will boost its total annual production to more than 140,000 oz.

The company is gearing up for a production decision at Bissett, “within a matter of weeks,” which could enable it to reach intermediate producer status by 1997.

Rea Gold is awaiting the final draft of an independent feasibility study carried out by H.A. Simons. In anticipation of a positive decision, the company has added more personnel to its payroll, including a mine manager for Bissett.