Programs planned for McWatters and Maude Lake

With a development program under way at its namesake mine near Rouyn-Noranda, Que., McWatters Mining (MCW.A-M) also plans to spend $3 million to bring the Maude Lake gold project near Matheson, Ont., into production.

McWatters recently completed a merger with Maude Lake Gold Mines, whose key asset is the Maude Lake project, which has a resource of 813,400 tons grading 0.24 oz. gold per ton in all categories. Of that, 510,116 tons grading 0.25 oz. are above the 700-ft. level and accessible via an existing 450-ft. ramp.

McWatters’ goal over the next 18 months is to bring the project into production at an initial rate of more than 20,000 oz. gold per year. In the meantime, drilling will test mineralization previously intersected at depth.

“Our goal this year is to prove up reserves and then start an underground program in 1997,” says Claire Derome, president of McWatters.

Maude Lake also owns a 10,000-acre land package that will be explored in a $1-million program planned for next year.

In Quebec, the company expects to have completed, by mid-January, all development work related to ramp and drift construction at the past-producing McWatters mine.

Some underground mining is taking place and McWatters expects to produce 5,000 oz. during the development stage. Richmont’s Camflo mill will handle processing of the ore. McWatters expects that selective mining will reduce dilution and improve last year’s results of 0.09 oz. from a 30,000-ton bulk sample. The company expects to produce 26,000 oz. per year once the mine achieves full production. The McWatters mine has an overall resource of 1.2 million tons grading 0.18 oz. in three zones. Existing reserves above the 550-ft. level will allow ramp-access production for at least five years.