Whim Creek gold record set at Meekatharra mines

Record gold production was realized by Whim Creek Consolidated from mining operations in Australia. For the nine-month period ended Sept. 30, the company produced 30,193 oz of gold. For the third quarter, gold output was 11,520 oz. The record output generated earnings of $7.2 million (A) for the nine month period. This includes an extraordinary gain of $1.9 million gained from the sale of a minority interest in the Peak Hill gold venture.

Whim, which is controlled by Northgate Exploration and Northgate’s affiliate Westfield Minerals, as to 8% each, operates the Haveluck gold mine in the Meekatharra area of western Australia. A $3 million upgrading of the plant has resulted in an increase in throughput from 38,000 tonnes per month to 53,000 tonnes. Gold output has increased from 2,800 oz per month to 4,100 oz per month. During the period, the company processed 472,032 tonnes of ore from all sources, averaging 2.11 g gold per tonne.

At the nearby Phar Lap, Fenian and Prohibition open pits, two million tons of waste was removed with the objective of accessing 600,000 tonnes of ore in the Phar Lap.

Whim Creek is also starting site work for the 700,000-tonne-per-year gold mill at Paddy’s Flat, also in the Meekatharra area. Project capital costs are estimated at $14 million with completion scheduled for March, 1988. At the Labouchere project, proposals are being received for the development of the deposit hosting 1.45 million tonnes of reserves grading 3.68 g gold per tonne.

On the exploration front, Whim Creek focused on defining ore reserves at the Meekatharra and Labouchere projects. The best results for the period came from the Halcyon property in the Meekatharra camp. Previous work has defined 175,000 tonnes of material grading 3.9 g gold per tonne.

Mineralization at the Halcyon deposit remains open down dip and in one direction along strike. At the Prohibition pit, drilling is continuing testing for ore at the lower levels of the open cut.

In the U.S., Whim Creek has a 25% interest in the wx syndicate. The syndicate operates the Little Bald Mountain gold mine which produced 2,320 oz of gold during the past quarter. Output for the year from the heap leach mine totals 3,032 oz gold. At the South Mercur gold project in Utah, drilling suggests reserves will be modestly increased, Whim says. Reserves stand at 2 million tons grading 1.88 g gold per ton.