Vancouver –The initial results from an on going $3.9 million program on the Meadowbank property in Nunavut continue to yield promising results for Cumberland Resources (CBD-T).
Located 70 km north of Baker Lake in Nunavut, the wholly-owned project hosts five deposits containing a measured and indicated resource of 7.8 million tonnes grading 5.79 grams gold per tonne, plus an inferred resource of 10.9 million tonnes averaging 4.44 grams gold. The latest program includes definition drilling over the Vault deposit and reconnaissance drilling over the PDF zone.
Some 50 holes have been completed during the on going program with 35 of them collared at the Vault deposit (inferred resource of 7.47 million tonnes grading 3.90 grams gold per tonne). Highlights include: 11.2 metres grading 3.45 grams gold in hole 62 and 10.6 metres grading 14.1 grams gold in hole 64.
“We are very encouraged with the recent results from the campaign at the Vault deposit,” says Senior Vice President of Exploration, Kerry Curtis. “On a grade basis, all holes are returning intersections well above the 2.0 grams gold cutoff anticipated for open pit mining of the deposit.”
Moving 10 km to the north, five holes tested the PDF zone. Discovered in 1999 by surface prospecting, a 250-metre section of the the zone was tested by 5 holes in 2000. The latest results include 5.9 grams gold over 0.6 metre in hole 8 and 14.8 grams gold over 0.7 metre in hole 11. Holes 7 and 10 failed to cut any significant mineralization.
Earlier economic studies on the project, envisioned a production rate of 246,000 oz. gold per year at a total cash cost of $US 168 per oz with initial capital cost set at $US123.5 million. The mine life comes in at 8.3 years and calls for a payback in 4.9 years with 85 % of the production derived from open pits and an average gold price of US$300 per oz. Metallurgical studies aimed at optimizing gold recoveries and improve operating projections are continuing. Last year, initial metallurgical test work on the Vault deposit showed a 92% recovery rate.
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