Vedron delays decision on Timmins production

A production decision at Vedron Ltd.’s Timmins gold project in northern Ontario has been put off until at least July, President Leon La Prairie told shareholders at the annual meeting.

While the company is encouraged by its on-going exploration work, La Prairie said insufficient data prevents release of a tonnage figure and grade. A change in the program, involving redirecting the ramp currently under construction, necessitated altering the work schedule.

Vedron was hoping by now to have been able to confirm reserves, above the 500-ft level, of more than 500,000 tons grading between 0.23 oz gold per ton and 0.33 oz.

The decline ramp currently extends about 4,000 ft to a vertical depth of 600 ft; plans call for it to reach 1,000 ft.

The company shipped 5,000 tons of development muck to Belmoral Mines’ milling facility at Val d’Or, Que. This returned an average grade of 0.12 oz. (Belmoral has a 57.5% interest in Vedron.)

A test strike now under way is showing an average mining grade of about 0.20 oz.

One decision facing the company is whether to build its own mill. La Prairie said the estimated cost of putting up a mill and driving the ramp to 1,000 ft is $15 million. An alternative to an on-site mill would be to negotiate an agreement with a neighboring mine to process Vedron’s ore.

La Prairie said the company is currently negotiating a deal for financing.

The Timmins holdings comprise 58 claims, including the former Buffalo Ankerite property. The property’s Vedron zone, which is currently undergoing exploration, was mined by previous operators.

Vedron reported a net loss of $211,616 for the fiscal year ending Aug 31, 1987, and a deficit at the end of the fiscal year of $2.9 million.

Appointed to Vedron’s board of directors were John Botsford, Kenneth Dalton, Steven Harapiak, Rene Galipeau, Leon La Prairie, Joseph O’Brien and William Allen.