The Island gold project near Dubreuilville, Ont., has reserves sufficient to produce for over four years, plus significant resources, according to a new calculation by outside consultants.
Joint-venture partners Richmont Mines (RIC-T, RIC-X) and Patricia Mining (PAT-V, PTMHF-O) commissioned the estimate from consulting firm Genivar. The reserve estimate included an economic analysis based on mining and milling experience at the project to date.
The proven and probable reserve is 1 million tonnes grading 8.55 grams gold per tonne, in two zones, Island (795,000 tonnes at 8.09 grams per tonne) and Lochalsh (219,000 tonnes at 10.2 grams). The mill at Island would take about 650 tonnes per day, implying annual production of around 60,000 to 65,000 oz.
Genivar estimated costs at $105 per tonne, giving a total cash cost of US$370 ($425) per oz. The reserves have a cutoff grade of 5 grams gold per tonne, and a minimum true thickness of 2 metres; development workings were taken to be 3 metres wide. Mining dilution was taken to be 15% of tonnage, grading 0.5 gram gold per tonne, and mining recovery to be 100%.
Beyond the 4-year reserve, a measured and indicated resource of 455,000 tonnes, grading 10.26 grams gold per tonne, and an inferred resource of 611,000 tonnes, grading 9.96 grams, are also known. The bulk of the resources are on the Lochalsh and Goudreau zones. The cutoff grade was again 0.5 gram per tonne, with minimum widths of 1.5 to 2 metres, depending on the zone.
Island’s mill was started up in September 2006, processing 600 tonnes per day. Development ore in the early stages of mining ran about 4 grams gold per tonne, and the mine poured its first gold in November.
In early May, the companies received approval of a closure plan for the project from the Ontario government, the final approval needed to go into commercial production.
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