Drill-indicated reserves at the former producing Lamaque gold mine have been increased to 1.73 million tons grading 0.19 oz gold per ton, Tundra Gold Mines (VSE) says. Located near Val d’Or, Que., the Lamaque produced 21 million tons of ore grading 0.196 oz gold from 1935 to 1985. Tundra, which has a 50% interest in the property, has also entered into an option agreement to acquire the remaining 50% interest in the property held by Teck Corp. (TSE).
The updated reserve estimate was calculated by Tundra from information provided by Teck. The reserves are hosted in six different zones. The majority, 970,000 tons grading 0.176 oz gold, are in the No 4 plug. The reserves are based on a minimum 6-ft mining width with all assays cut to one ounce.
Following the signing of the option agreement with Teck, Tundra has embarked on a follow-up drill program designed to build additional tonnage in the No 4 plug and the North Shear zone. Tundra has five drill rigs in operation.
The company can earn Teck’s interest for $8 million. The first $3 million must be paid before Sept 30, 1989 with the remaining $5 million payable in five equal yearly installments. An important part of the assets is the 1,800-ton-per-day mill on site.
As part of the option deal, Tundra must sink an exploration shaft to the 1,000-ft level on the No 4 plug.
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