Red Lake reopening nears

Underground sampling at the developing Red Lake gold mine in northwestern Ontario is confirming earlier drill results, reports Goldcorp (G-T).

The efforts have been focused in one of several lenses that make up the High Grade zone. Discovered in 1995, the zone now hosts reserves of 1.5 million tonnes grading 46.97 grams gold per tonne. The estimate, calculated by Watts Griffis & McOuat, is based on a gold price of US$300 per oz., 22% external dilution and the cutting of higher grades to 10, 5 or 2 oz.

A total of 28 samples, averaging half a metre in length, was taken from faces as a 52-metre-long drift was driven into the Main zone on the 34 Level. Seven earlier holes drilled in that section yielded an average uncut grade of 199.9 grams gold per tonne over an average horizontal width of 2.6 metres. The average uncut grade and width of the channel/chip samples were similar: 238 grams over 2.4 metres.

Gilles Filion, Goldcorp’s vice-president of exploration, says the drift contained abundant visible gold and that the vein was easy to spot, “which will greatly assist grade control.” He adds the results also confirm reserve interpretations for this portion of the zone.

Ground conditions on 34 Level are similar to those found elsewhere in the mine, so only conventional rockbolts and wire mesh are needed.

Modifications to the mill are now 75% complete, with the new jaw crusher currently undergoing test runs at 90-110 tonnes per hour. The mill and backfill plant are on schedule for commissioning in July, with production expected to follow in mid-November.

At full steam, Red Lake is expected to produce 240,000 oz. annually at an average cash cost of US$88 per oz. Plans call for 64,000 oz. to be cranked out this year from preproduction development.