A positive production decision on the Snip property, in the Iskut River region north of Stewart, B.C., is virtually a certainty, according to mine manager Merlyn Royea. The project is 60% owned by Cominco (TSE) and 40% owned by Prime Resources Group (VSE). The final feasibility has been presented to Prime by Cominco for comments before final approval. With mobilization of construction clearing equipment already set, the outcome of the final production decision is virtually preordained.
Initial production on the Snip project is expected in January, 1991, somewhat off the mark from the prediction made in mid-1988 for production the following year.
Uncertainty over government funding for a road into the area certainly has not helped to hurry Cominco into a production decision.
The go-ahead for a road into the area has been a blizzard of on-again, off-again rumors. The rumors appear to fall in the “on-again” category at the present.
In any event, the Snip deposit is unquestionably rich with indicated reserves of 862,000 tons grading 0.89 oz. gold per ton and inferred reserves of 169,000 tons grading 0.81 oz. for a total of 1.03 million tons grading 0.88 oz.
The reserves are based on a 20% mining dilution which the company feels is reasonable based on experience gained during 13,800 ft. of development work.
The deposit itself can be described as a single vein structure varying in width of 5-30 ft., and extending over a strike length of about 600 ft. Cominco plans to use a combination of shrinkage stoping on the steeply dipping portions of the deposit, which tend to be narrow, and cut and fill mining methods on the wider and shallower portions.
About 90% of the reserves are calculated from drilling on 41 ft. centers. Other parameters used for the reserve estimate were; a minimum mining width of 5 ft., a cutoff grade of 0.35 oz., a specific gravity of 3.1, and sample cutting to 4.38 oz. A total of about 209,000 ft. of surface and underground drilling have been completed to date on the property.
Although Cominco initially intended to use a cyanidation process to mill the ore, it now plans to use gravity concentration and floatation to produce both bullion and a concentrate for transport and final processing off-site. This alleviates any environmental problems associated with permitting and running a cyanide operation.
Cominco estimates that about 30% of the contained gold would be recovered in the gravity circuit with the balance reporting to the concentrate. Cominco noted that results from bulk sample tests done last year indicate that overall gold recoveries will be in the order of 90%.
The company expects to produce about 4,400 tons of concentrate per year which will require transport off-site.
Cominco solved its transportation problems with the recent purchase of a hovercraft. The hovercraft is being converted from a passenger ship which will allow it to haul up to 11 tons of cargo, thereby alleviating the company’s transport problems in light of the uncertainty over a road into the area.
Royea noted that the tonnage of concentrate produced is roughly equal to the camp’s consumable requirements.
Final sizing, capital and operating costs as well as a final production decision await the release by Cominco of its feasibility study.
A positive production decision on the Snip property, in the Iskut River region north of Stewart, B.C., is virtually a certainty, according to mine manager Merlyn Royea. The project is 60% owned by Cominco (TSE) and 40% owned by Prime Resources Group (VSE). The final feasibility has been presented to Prime by Cominco for comments before final approval. With mobilization of construction clearing equipment already set, the outcome of the final production decision is virtually preordained.
Initial production on the Snip project is expected in January, 1991, somewhat off the mark from the prediction made in mid-1988 for production the following year.
Uncertainty over government funding for a road into the area certainly has not helped to hurry Cominco into a production decision.
The go-ahead for a road into the area has been a blizzard of on-again, off-again rumors. The rumors appear to fall in the “on-again” category at the present.
In any event, the Snip deposit is unquestionably rich with indicated reserves of 862,000 tons grading 0.89 oz. gold per ton and inferred reserves of 169,000 tons grading 0.81 oz. for a total of 1.03 million tons grading 0.88 oz.
The reserves are based on a 20% mining dilution which the company feels is reasonable based on experience gained during 13,800 ft. of development work.
The deposit itself can be described as a single vein structure varying in width of 5-30 ft., and extending over a strike length of about 600 ft. Cominco plans to use a combination of shrinkage stoping on the steeply dipping portions of the deposit, which tend to be narrow, and cut and fill mining methods on the wider and shallower portions.
About 90% of the reserves are calculated from drilling on 41 ft. centers. Other parameters used for the reserve estimate were; a minimum mining width of 5 ft., a cutoff grade of 0.35 oz., a specific gravity of 3.1, and sample cutting to 4.38 oz. A total of about 209,000 ft. of surface and underground drilling have been completed to date on the property.
Although Cominco initially intended to use a cyanidation process to mill the ore, it now plans to use gravity concentration and floatation to produce both bullion and a concentrate for transport and final processing off-site. This alleviates any environmental problems associated with permitting and running a cyanide operation.
Cominco estimates that about 30% of the contained gold would be recovered in the gravity circuit with the balance reporting to the concentrate. Cominco noted that results from bulk sample tests done last year indicate that overall gold recoveries will be in the order of 90%.
The company expects to produce about 4,400 tons of concentrate per year which will require transport off-site.
Cominco solved its transportation problems with the recent purchase of a hovercraft. The hovercraft is being converted from a passenger ship which will allow it to haul up to 11 tons of cargo, thereby alleviating the company’s transport problems in light of the uncertainty over a road into the area.
Royea noted that the tonnage of concentrate produced is roughly equal to the camp’s consumable requirements.
Final sizing, capital and operating costs as well as a final production decision await the release by Cominco of its feasibility study.
Be the first to comment on "Rich Snip gold project sure to please owners Cominco and Prime (June 18, 1990)"