TVX Gold probes potential of Casa Berardi claim group

In a bid to boost its North American gold reserves,MDBO TVX Gold (TSE) is continuing an aggressive exploration program this year on its large Casa Berardi claim group in northwestern Quebec. The search for new orebodies along strike from its existing gold mines is a top priority for the company, according to Stephen Sopher, executive vice-president. Sopher sees both underground and field exploration at the company’s North American operations.

TVX Gold, together with its 40% partner Golden Knight Resources (TSE), controls more than 42 km of favorable strike length outside the existing Casa Berardi mines area.

“We think we can find new ore for under $30 an oz. in the Casa Berardi greenstone belt,” Sopher told The Northern Miner in an interview. He said the Casa Berardi belt is one of the company’s most cost-effective and attractive locations to look for new ore because of its proximity to TVX’s existing mines.

Sopher, formerly vice-president of Inco Exploration and Technical Services, took up his new post at TVX Gold when Inco Gold amalgamated with Consolidated TVX Mining earlier this year.

One major advantage enjoyed by TVX Gold in northwestern Quebec is the fact that its geologists have developed a clear understanding of how gold occurs in the Casa Berardi belt, thanks to years of experience gained at the company’s operating mines. Several new surface exploration targets have already been identified through geophysical surveys for follow-up drilling later this year, he said.

Exploration work at Casa Berardi is currently proceeding along two main thrusts, said Sopher. The company is conducting both underground work, below the 300-metre level of the East mine, and field work across its extensive property holdings along strike from the mines. This year, about 360 metres of underground drifting are planned for the East mine, which will be followed by 8,000 metres of underground drilling.

To date, about 70% of the holes drilled below the mine’s 300-metre level have encountered economic grades of mineralization.

The company is currently considering various options to extract the deeper ore including the possibility of sinking an internal shaft in addition to the current ramp access.

“We’re not only trying to replace mined out reserves, but we’re also looking for new mines on the surrounding claims at Casa Berardi,” explained Sopher. In the long run, it will cost the company much less to expand its existing operations in northwestern Quebec than to build a completely new mine elsewhere. All the necessary infrastructure such as roads, power lines, and surface plant facilities are already in place.

Meanwhile, in northwestern Ontario, TVX Gold is putting the finishing touches on reserve calculations, metallurgical work and cost estimates for its 67%-owned Wilanour gold project near Red Lake, Ont. Inco began re-evaluating the old mine three years ago and is currently considering the use of bulk mining methods to achieve the lowest costs for the project. The gold mineralization has proven to be fairly predictable during bulk sampling tests and may be amenable to relatively cheap bulk mining methods.

Elsewhere in northwestern Ontario, the company’s 32%-owned Musselwhite joint venture is undergoing a geological reinterpretation designed to check the viability of developing its higher grade gold reserves. Placer Dome (TSE) is operator and 43% owner of that project which hosts a substantial preliminary reserve of 8.2 million tonnes grading 6.9 grams gold per tonne (0.20 oz. per ton).

In northern Manitoba, TVX Gold’s 35%-owned High River property is awaiting an improvement in bullion prices to make its development economic. If gold prices were to rise significantly, the company feels it wouldn’t take long to get the former mine up and running again. One TVX official estimated as little as nine months would be needed to start production at the old mine, since the company already has a good handle on the grades and reserves.

At the same time, TVX is also keeping its eyes peeled for any new acquisitions in North America, according to Sopher. “With the current drop in gold prices and financing difficulties being experienced by juniors, we expect to be looking at more new opportunities,” he added.