Star Lake raises hopes for Saskatchewan gold

Some of Saskatchewan’s top mining representatives were out in force recently to celebrate the official opening of the province’s first gold mine in nearly 50 years.

Saskatchewan hasn’t had a producer since operations at the old Beaver Lodge Box Mine were shut down in 1942. Located 700 miles northwest of La Ronge, the old mine produced 64,000 oz of gold during its three-year lifespan.

But the recent opening of the Star Lake gold mine in the La Ronge greenstone belt in northeastern Saskatchewan, suggests that one of the world’s major grain centres is about to become a substantial gold producer.

Among the more than 100 guests who attended the official opening were Bob Andrew, Saskatchewan’s Minister of Economic Development and Trade, and Roy Lloyd, president of Saskatchewan Mining Development Corporation. The smdc operates the mine.

“We are delighted to welcome a gold producer into the Saskatchewan economic mix,” said Mr Andrew who is the minister responsible for the smdc.

“I hope to become very good at opening gold mines thanks to the intensive exploration and development activity in northern Saskatchewan,” he said.

The opening ceremony took place three months after the first gold bar was poured from the Star Lake gold property. From January to the end of May, l987, the mine has produced approximately 12,000 oz of gold worth about $6.7 million at current prices.

With reserves of 230,000 tons grading 0.5 oz per ton, the mine is expected to produce (at a rate of 220 tons per day) an estimated 80,000 oz during the mine’s three- year life span.

The deposit, hosted in a quartz- filled shear zone, is accessed via a 3,800-ft ramp which reaches a depth of 426 ft, with four mining levels.

The $13-million project is shared by partners Saskatchewan Mining Development Corp. (50%), Starrex Mining Corp. (35%) and Uranerz Exploration and Mining (15%).

A West German mining company, Uranerz has the right to earn 15% of Starrex’s interest in the mine by providing Starrex’s share of the capital costs.

The first gold producing project for each partner, it will provide employment for about 53 people on a 7-day-in, 7-day-out rotation basis.

“The Star Lake development has attracted additional risk capital to the area,” said Mr Lloyd who went on to say that historically in Canada, producing gold mines act as catalysts for further mine development.

Among the companies attempting to follow the Star Lake venturers into production are Mahogany Mineral Resources and Canadian Premium Resources, comp anies which are exploring the 403-acre Jolu property immediately north of the Star Lake mine.

The property is currently estimated to have 966,000 tons averaging 0.50 oz in two zones, the Rod Zone and the Mallard Zone. That reserve estimate is based on a 234,000 ft of drilling completed in l986.

In a bid to gain a foothold in the region, Royex Gold Mining recently became operator in the joint venture by turning over 600,000 Canadian Premium shares to Mahogany. Under the agreement, Royex earned a 30% interest in the property while Mahogany retained a 42.5% interest and Canadian Premium 27.5%.

Saskatoon-based Colray Resources and Cogema Canada are also involved in exploration projects close by.

“As owners of Star Lake, we are confident that this pattern will continue in the Star Lake area,” said Mr Lloyd.

Highlight of the afternoon’s activities was the unveiling of a permanent marker and plaque by Eric Partridge of Prince Albert. Mr Partridge is one of the prospectors who first found gold in the Star Lake area in around l960.

With such a high ore grading, mining costs are expected to be in the $200-per-ton area.