Teck, Tundra project could produce in ’88

In the spring of 1985, 380 workers at the Lamaque gold mine near here, lost their jobs when Teck Corp. shut down the facility for lack of ore. By late next year, this famous mine could be reopened, largely in part due to exploration successes from a program funded by Tundra Gold Mines.

Tundra, a company within the A. W. Applegath group of companies, is funding a $9-million 3- year effort in order to earn a 50% interest in a portion of Teck’s large land holding surrounding the original mine.

During a tour of the property, Dr Matthew Blecha, vice-president of Teck Explorations, outlined some of the threshold parameters required to warrant reopening the mine. “It is estimated that to justify a 600-ton-per-day operation, one million tons of reserves should be identified initially,” he told the group of more than 60 brokers, analysts and investors. Although the project is still in the exploration stage requiring considerable work, Dr Blecha concluded that “I am confident that Lamaque will reopen and will stay active for some time.” During its 50-year operating life, the Lamaque mine produced 21 million tons of ore grading 0.196 oz gold per ton from a gold-bearing dioritic intrusive.

The Tundra-funded program is focusing on 99 acres surrounding the No 5 intrusive or plug. This claim block is adjacent to the old mine and is accessible from its workings. A number of targets located north of the No 5 plug were outlined by surface and underground drilling. To date, the best results have come from the No 35 vein.

Drifting from the 3,200-ft level has encountered above-average grades in the vein. These include a 465-ft section of drift which averaged 0.22 oz and 7.1 ft in width.

An underground examination of the drifted section by The Northern Miner shows a quartz-tourmaline pyrite-bearing vein cutting mafic volcanics. The vein pinches and swells over short distances along the drift — an observation typical of the entire camp here. Pyritic volcanic wallrock is also gold-bearing, according to John Scott, a mine geologist with Teck. 230,000 tons in 35 vein Although no reserves have been calculated for the vein, Dr Blecha feels that, from work completed, 230,000 tons is a pote ntial figure based on years of operating experience at Lamaque. The first evidence of the 35 vein’s vertical continuity came from a drill hole completed 125 ft above the 3,200-ft level. The hole cut a true width of 9.2 ft grading 0.167 oz.

A large part of the current program, which remains to be completed, will test a portion of the No 5 plug. Drifting on the 3,400-ft level has another 700 ft to go before drill stations will be in place to test the plug. The plug has been partially tested by several surface holes which showed its continuity at depth below 2,000 ft.

Targets with the potential for hosting additional reserves include numerous veins subparallel to the 35. Also, 200,000 tons remain in the Lamaque mine workings, Teck says. Considering the past history of the property, its large size and the quality of the initial results, threshold reserves of one million tons should be achieved following the completion of the current program by year-end.

If the reserves are successfully outlined, Teck will then decide on rehabilitating the 1,800-ton-per-day Lamaque mill, which was built in 1935. An inspection of the facility showed it to be in a generally dilapidated state. According to Ken Hymas, general manager of eastern mining operations mt Teck, approximately $4.5 million will be required to refurbish one 600-ton- per-day section of the mill. This, Mr Hymas feels, will require at least six months work. The Lamaque mill consists of three 600-ton-per- day modules for a total capacity of 1,800 tons. (To justify the entire capacity the partners need three million tons of reserves, Mr Hymas told The Northern Miner).

Based on an initial 600-ton-per- day operation, gold output would total 35,700 oz per annum, assuming a recovery rate of 95% and an average diluted grade of 0.174 oz. Mining costs are forecast at $50 per ton. To date, Tundra has spent $4 million on the project, with the current phase budgeted at an additional $3 million.