Westmin plans May startup for Tenajon’s SB

Operator Westmin Resources (TSE) plans to begin mining the 35 zone on the SB property before mid-May of this year, with the first batch of ore scheduled to be milled in mid-July. The company is earning a 50% interest in the gold project from Tenajon Resources (VSE). The property is near Stewart, B.C., and within trucking distance of Westmin’s 60.1% owned Premier Gold mill.

The 35 zone is now reported to contain proven and probable reserves (cut and diluted) of 105,830 tons grading 0.29 oz. gold and 1.92 oz. silver per ton. SB reserves will be processed at the Premier gold mill which has a capacity of 2,200 tons per day.

Westmin projects that 1991 net cash flow from SB production for Tenajon’s account will be about $2.9 million.

The SB property contains several other zones. Westmin recently calculated preliminary reserves for the West Kansas zone of 294,750 tons grading 0.16 oz. gold uncut (0.098 oz. cut) along a strike length of 330 ft. Within this preliminary reserve, 44,760 tons grading 0.65 oz. gold (0.29 cut) has been outlined at a cutoff grade of 0.14 oz. gold.

The West Kansas zone is still open to the south and downdip and occurs within a geologically complex area south and somewhat west of the 35 zone and northwest of the Kansas zone.

Tenajon said more work will be required before an accurate assessment of Kansas zone reserves can be made. The partners are planning for a possible 1991 exploration program to develop these and other possible additional reserves.