The start of concentrate production will officially end Westminer’s gold development activities at the Forest Hill and Beaver Dam projects which were key assets of Seabright Resources, purchased by Westminer for $92 million in late 1987.
The Gays River mill, originally built by Esso Minerals to process zinc-lead bearing ores from 1979- 1981, was converted to process gold-bearing ore by Seabright. The company purchased the mill from Esso in 1985.
Following the failure of Seabright’s Beaver Dam and Forest Hill gold projects, Westminer opted to dewater the Gays River mine at the beginning of this year. Successful test mining during the year convinced Westminer to convert the Gays River mill back to zinc-lead processing.
According to an address made by Sir Arvi Parbo, chairman of Western Mining in Sydney, “test mining of lead and zinc at Gays River in Nova Scotia has been completed satisfactorily leading to a decision to begin routine production in January.”
Initial production is expected at a rate of 10,000 tons of lead and 15,000 tons of zinc in concentrate per year. This production level is expected to increase once operations stabilize, Parbo said.
Drill-indicated reserves at Gays River total 1.7 million tons grading 10% zinc and 6.2% lead.
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