Renabie ore reserves revised; underground work encouraging

Reserves at the end of July stood at more than one million tons at the Renabie Gold Mines’ property in northern Ontario, where significant gold values have been returned at the 3,930-ft level and a $3.9-million underground development program is under way.

Robert McCallum, Royex Gold Mining’s new vice-president operations, said ore reserves in the proven and probable categories at the end of July stood at 1,027,050 tons grading 0.25 oz gold per ton, at a cutoff grade of 0.15 oz. (Mine reserves were almost tripled from last September following completion of a drilling program in May.)

At the 3,930-ft level, exploration continues west of the diabase dyke. At the end of July, Mr McCallum said, some 240 ft of development had been completed of which 226 ft was in ore of consistently good value. The consolidated results of drifting in ore to the end of July were 0.72 oz, cut to 1.5 oz.

Development work remaining to be done at this level includes 70 ft of drifting in ore to reach the dike; 100 ft of waste development through the dike; 700 ft of ore and waste development west of the dike including stope preparation; and, 240 ft of waste development east of the dike to connect with a future service raise and waste pass system.

Approximately $2.9 million is being spent on the underground work; another $1 million will be spent on equipment. Mr McCallum said ore production is expected within 10-12 months. Royex the operator

Royex and American Barrick Resources each have a 50% interest in the Renabie project, located near Wawa; Royex is the operator. During the mine operation’s third quarter (April 1-June 30), 59,499 tons of ore were mi lled at an average grade of 0.21 oz gold per ton. The recovery rate was 93.2%, with 11,546 oz produced. Total gold production for all three quarters of the fiscal year was 28,015 oz.

Production during the third quarter was the best on record, Mr McCallum said. During the quarter, the average milling rate was 654 tons per day; during April the milling rate averaged 751 tons per day. Gold production for the quarter and for the month of April (4,372 oz) represent highs for the mine.

Mr McCallum took over as vice- president operations in June. A native of South Africa and a mining engineer who has been in Canada 10 years, Mr McCallum has worked for Anglo American, Denison Mines, Cyprus Anvil Mining and Potash Corp. of Saskatchewan.

Effective Sept 1, Brian Eyres becomes manager of the Renabie mine, replacing Lyle Chapman. Also, Garry Biles, mill superintendent at Renabie, has been named project manager for Royex’s Jolu joint-venture property in Saskatchewan.

In his new position, Mr McCallum is responsible for Royex’s interests in the operations of Renabie, Jolu and Lacana Mining, which is 44% owned by Royex. He reports to Gil Leathley, who is senior vice- president operations for Royex and president of Lacana. Exploration arm

In an organizational move, the Nickel Plate mine in British Columbia is to come directly under the wing of Lacana, Mr McCallum said. The gold mine was opened this year under the direction of Mascot Gold Mines, which is 51% owned by Lacana. Mascot will play the role of an exploration company.

Total gold production at Renabie this year is forecast to be 37,100 oz, at a cost of $268(US) per oz. Production for 1988 is forecast to be 41,500 oz and for 1989-91 inclusive, 41,400 oz annually. A $262 production cost is forecast for 1988-91 inclusive.

Renabie posted its first annual profit, $2.6 million, last year for the 12 months ending Sept 30, 1986.