Simkar project ships first ore to Belmoral mill

Production recently commenced at the Simkar gold mine of Ronrico Explorations (VSE) following the shipment of 10,500 tons of ore and development muck to Belmoral’s (TSE) mill near Val d’Or, Que. Ronrico President Donald Kemp said the first ore shipment will probably grade about 0.20 oz. gold per ton which is somewhat lower than calculated mine grade. The first gold pour is scheduled for April 11.

The junior company originally started to work on the project in 1987 and last year obtained $2.5 million in debt financing to bring the former mine into production. After dewatering the underground workings and conducting an extensive exploration program, Ronrico outlined 300,000 tons of minable reserves grading 0.25 oz. gold per ton, which is sufficient for about four years of production at 78,000 tons per year.

“More importantly, our present tonnage can be mined profitably with gold at $350 an oz.,” said Kemp. Only a small portion of the Simkar property has been developed for mining and delineation of additional tonnage will be ongoing, he added. “Even within our present working area, the zones are completely open along strike and at depth.” Shares of Ronrico of which there about 12 million issued and outstanding have traded recently at around 15 cents. Louvicourt Gold Mines (CDN) holds a 50% interest in the mine, while La Fosse Platinum Resources (TSE) owns a 58% interest in Louvicourt.