Vancouver Cumberland Resources (CBD-T) has launched a new $2.5 million exploration program over its wholly-owned Meadowbank gold project some 70 km north of Baker Lake in Nunavut.
The property hosts five deposits containing a measured and indicated resource of 7.8 million tonnes grading 5.79 grams gold per tonne, plus an inferred resource of 10.9 million tonnes averaging 4.44 grams gold. The company currently has three drill rigs turning with its eye on expanding the known resources and exploring for new deposits.
Earlier economic studies on the project, envisioned a production rate of 246,000 oz. gold per year at a total cash cost of $US 168 per oz with initial capital cost set at $US123.5 million. The mine life comes in at 8.3 years and calls for a payback in 4.9 years with 85 % of the production derived from open pits and an average gold price of US$300 per oz.
Cumberland anticipates that its newest drill program will boost the resources allowing for a 10-year mine life. Some 67 diamond drill holes totalling 8,100 metres are slated for this program. The targets include the Vault, North Portage and Third Portage deposits. So far, 14 holes have been completed with the results in from the first holes collared in the northern portion of the Third Portage deposit. The latest results include: 5.01 grams gold over 3.5 metres, 14.15 gram gold over 5.1 metres and 22.11 grams gold over 3.3 metres.
One rig is continuing to turn at the Third Portage deposit and 5 km to the north a second drill rig is exploring the possible expansion of the Vault deposit.
Cumberland has also launched an overburden drilling program, which is focussing on the unexplored 5 km area between the original four Meadowbank gold deposits and the Vault deposit. So far 135 overburden holes have been completed.
Metallurgical studies aimed at optimizing gold recoveries and improve operating projections are continuing. A total of 850 kg of material from all five deposits has been shipped to Lakefield Research for detailed testwork.
Last year, initial metallurgical test work on the Vault deposit showed a 92% recovery rate. The Vault deposit hosts an inferred resource of 7.47 million tonnes grading 3.9 grams gold per tonne.
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