September is target date at St Andrew’s Stock Twp.

Based on a reserve inventory of 1.1 million tons grading 0.184 oz gold per ton, President Warren Armstrong announced the original production decision back in June, 1987.

“We contemplate a start-up before the end of 1988,” said Armstrong who informed shareholders at the 1987 annual meeting that yearly production would reach 30,000 oz at cost of about $250(US) per oz.

While spokesman Gerald Harron said recently the production decision was “clearly premature,” the time taken to complete a bankable feasibility study and raise $15 million for mill construction following the 1987 stock market crash has also meant the Toronto-based subsidiary of Quebec Sturgeon River Mines (TSE) has had to delay its production plans.

With financing now in place, however the company is currently on budget and on target for September start-up at the Stock Twp. project. By the time of its first gold pour, St Andrew will have spent close to $40 million on underground exploration and surface development.

According to Harron, the headframe and skipping facilities will be completed by the end of March. The crushing plant and transfer tower are more than halfway toward completion. The 500-ton-per-day milling facility is also about 60% ready.

St Andrew hasn’t yet obtained the necessary permits for a large tailings pond but construction of the retaining walls is almost finished and no major problems in obtaining the permits are anticipated.

As development work on the surface plant continues, a single diamond drill is currently probing the East zone. Located about half a mile east of the Stock Twp. shaft, it is one of at least five satellite deposits slated for follow up exploration at St Andrew’s Stock Twp. and adjacent Taylor Twp. claims.

The East zone has been tested for a strike length of nearly 1,650 ft and results include 93.8 ft in core length averaging 0.09 oz. However, initial production from Stock Twp. will come from the N-2, M-1 and M-2 zones which should support a mining operation for six years at an initial rate of 300 tons per day.

They can be accessed by an 884-ft shaft and underground workings on four levels — 200 ft, 325 ft, 450 ft and 575 ft.

“To get a balanced head grade, we will blend ore from all three zones,” said Harron.

Of the satellite deposits, which St Andrew had tested over the past couple of years, the new West zone appears to offer the highest potential, Harron said. Thought to be an extension of the M-1 and N-2 zones, it is located about 120 ft from the underground workings and could be accessed by extending one of the Stock Twp. drifts. The West zone was previously tested via 9,000 ft of surface drilling.

Back in 1986, the company commissioned a 565-ft shaft to conduct underground exploration on the Porphry zone deposit which is located about seven miles east of the main mine. But with only 51,000 tons grading 0.128 oz in mineable reserves, the Porphyry zone is considered uneconomic at current gold prices and it will be placed on the back burner for now.

Also on the low priority list is the Shoot zone deposit. Located about six miles east of the Stock Twp. mill site, it contains 627,000 tons of grade 0.15 oz in proven, probable and possible reserves.

]]>