Shaft deepening contemplated at Bachelor Lake

Bachelor Lake Gold Mines (TSE) is contemplating a shaft deepening program to open up a 12th level at the Desmaraisville mine operation in Quebec.

Hampered by a high dilution factor, the Bachelor Lake mine is currently undergoing a major development program designed to turn the operation around.

If the green light is given, an additional level would give the company a greater number of active stope areas to work with and much greater flexibility in mining, Bachelor Lake said. During the 6-month period ended June 30, the mine produced 10,743 oz gold grading 0.150 oz gold per ton at an average cost of $396(US) per oz. Recoveries were reported at 93.1%.

As a result, revenues from bullion production increased substantially to $5.48 million for the six months ended June 30 from $282,274 at the same time last year.

The company also managed to cut its first half losses to $770,039 or 10 cents per share compared to a loss of $3.7 million or 52 cents per share in the first six months of 1987.

Bachelor Lake attributes its recent losses to the high cost of development at Demaraisville where 12,000 ft of drilling was recently conducted on the A vein structure which has been traced over a 1,000 ft strike length.

During the latter part of 1988, Bachelor Lake is planning to complete exploration drifting on the 6th level.