An independent study sponsored by one of the minority partners in the Wilanour gold project near Cochenour, Ont., has confirmed the accuracy of previous reserve estimates by Toronto-based TVX Gold (TSE).
According to Strathcona Mineral Services, probable reserves in an area of the former Cochenour-Willans gold mine targeted for underground exploration stand at 192,000 tons grading 0.33 oz. gold per ton.
Wilanour Resources (TSE), which owns 30% of the project, retained Strathcona Minerals last summer to get a second opinion on reserves estimates announced by TVX after the latter elected to postpone a mine feasibility study. The remaining interest is held by TVX with 50%, Pronto Explorations (TSE) with 12.5% and Robert Fasken with 7.5%.
After spending $9 million, operator TVX advised Wilanour and Pronto of its opinion that probable and possible reserves of 446,979 tons of grade 0.56 oz. were insufficient to justify mine development at prevailing gold prices. The yellow metal traded recently at US$364 per oz.
Strathcona has also concluded that Cochenour-Willans should remain as an advanced exploration project requiring either higher reserve grades or higher gold prices, or a combination of both.
Strathcona has also told the partnership to look in other areas in a bid to identify reserves with a grade closer to the historical grade of the former gold mine. Located in the prolific Red Lake gold camp, Cochenour-Willans yielded 2.3 million oz. of the yellow metal before shutting down in 1971.
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