An agreement has been reached between Syngold Exploration and Minnova Inc. whereby the former will participate in an underground exploration program at the Delbridge/Kerralda property near Rouyn-Noranda, Que., where combined reserves for the Donalda No 1 extension zone and the Donalda No 2 zone are estimated to be 804,000 tons at an average grade of 0.25 oz gold per ton.
The underground program began this month and will include dewatering of the existing shaft (about 550 m deep), drifting, raising and diamond drilling, as well as installation of surface facilities. Subject to negotiation of an amendment to the existing agreement, the program will be funded 65% by Minnova and 35% by Syngold, which estimates its share of the costs will be between $3 million and $3.5 million.
Thirty holes were drilled in 1986 which led to the discovery of a mineralized extension of the past- producing Donalda No 1 vein. A second vein on the property was previously drilled off but not mined.
At a production rate of 500 tons per day, the mining project would have a lifespan of about four years at the current reserve level.
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