Shaft deepening at Doyon approved

The shaft at the Doyon gold mine 40 km east of Rouyn-Noranda, Que., will be deepened to 1,024 metres from 654 metres.

Equal Doyon partners Cambior (TSE) and Lac Minerals (TSE) have approved a feasibility study for the $23.7-million project.

Some of the funds will be used to complete lateral development and exploratory drilling and to buy additional equipment.

The decision to deepen the shaft was based on results from exploration in an area west of the Doyon fault. Results from the program confirmed the continuity of the mineralized zone and outlined an additional 4.9 million tonnes of proven, probable and possible reserves averaging 6.3 grams gold per tonne.

The mine, which employs almost 500 people, entered production in 1980 and is expected to produce its 3-millionth oz. this month.

Proven and probable reserves from the West zone, Main zone and low-grade stockpiles are roughly 9.5 million tonnes averaging 6.17 grams. Production costs for 1993 were $237 per oz. while depreciation costs were $70 per oz.

The shaft will provide access to new mining areas on the 10th and 14th levels and will allow for the completion of exploration drilling below the West zone. The shaft extension and development work is expected to start this September and be completed by the end of 1996.

Doyon’s production for 1994 is expected to be 7.5 million grams (240,000 oz.). During the first quarter of 1994, ore was processed at a daily rate of 3,252 tonnes, yielding more than 2 million grams (66,202 oz.). Gold output was greater than in the first quarter of 1993 because a higher tonnage was milled.