Two former producers Early ’89 production hope by Golden North and

Following its acquisition of a 57.54% interest in the Bralorne property, Golden North is looking forward to placing the former producing mine back in production in early 1989.

The interest was acquired from Mascot Gold Mines for $9 million which is being paid by transferring 1.5 million Golden North shares to Mascot. This increases Mascot’s interest in Golden North to 39%.

The 4,l88-acre property includes both the former producing Bralorne and Pioneer gold mines located near Bralorne, about 70 kilometres west of Lillooet, B.C.

A $3.1-million program is planned, with Mascot as operator. Golden North will pay $1.8 million of the costs. Work will consist of 17,000 ft of underground drilling, 10,000 ft of surface drilling and rehabilitation of underground workings.

Following a feasibility study this summer, Golden North hopes to begin construction of a mill by mid- August. President John Godfrey says capacity will be around 300 tons per day, expandable to 500. He adds that full production is scheduled for the first quarter of 1989.

Initial production will come from 150,000 tons grading 0.4 oz per ton which has been blocked out from the 300-ft to 800-ft levels. Reserves stand at 1,037,538 tons grading 0.27 oz and the zone is open on strike and at depth.

Godfrey estimates it will cost between $10 million-$15 million to bring the property on-stream.

Flow-through funding has been arranged for $5 million, part of which will be spent on Golden North’s Nickel Plate property located near Hedley, B.C. A $2.4-million, 40,000-ft drill program is planned here, also managed by Mascot.