Updated Reserve Report In Progress for Ketza River

A detailed reserve report update is being compiled by consultants Derry, Michener, Booth & Wahl for the Ketza River gold project in the Yukon Territory. Project operator Canamax Resources (TSE) expects to have a copy in hand by the end of October.

“Although it’s something we wanted to do in view of the problems our partner is having, the idea was to have a complete independent review of the reserves for our 1989 mining plan,” said James Smith, Canamax’s vice-president of mining. Pacific Trans-Ocean (TSE), which holds a 50% interest in the project, ran into financial problems caused by initial production shortfalls at the mine and is seeking long- term financing arrangements to meet its obligations to Canamax and Lloyds Bank.

The updated reserve report will also address a number of developments which have recently come to light at Ketza River. Based on further underground sampling and a 3-month study of mined volumes compared to tonnes received by the mill, Canamax has reduced the specific gravity of the oxide ore from the 3.1 tonnes per cubic metre, used as a basis for the feasibility study reserves estimate, to 2.5 tonnes.

Canamax also said mining operations to date have found both positive and negative changes in the position of the projected boundaries of the oxide ore estimated in the feasibility study.

“We are hoping that on balance the additions we have found will offset the potential losses in reserves caused by the reduction in the specific gravity,” said Smith. “And we also expect to replace some of the tons that might be lost with new reserves generated by our exploration program, particularly from the Break oxide ore zone which was drilled off earlier this year.”

As reported (N.M., Oct 24/88), the mine achieved its best monthly production results in September. The assayed mine grade was 0.42 oz gold per ton and the mill processed 10,546 tons with a calculated head grade of 0.40 oz gold. Smith said the mill head grades are now near target, increasing optimism the mine will turn out the kind of revenues originally projected.