McWatters explores near Sigma-Lamaque properties

As part of a larger plan to boost production and lower costs at its Val d’Or, Que.-area gold mines, McWatters Mining (MCW-T) has been carrying out near-surface exploration near its Sigma-Lamaque facilities.

Already during the first nine months of 1998, McWatters brought into production the Sigma III open-pit mine, which exploits surface extensions of known underground gold zones.

Of 40 vertical structures mined underground at Sigma, 10 have been explored at surface, including the Main Dyke structure, which has been mined at Sigma III.

A 79-hole, 3,980-metre drill program completed in September confirmed the eastern extension of the Main Dyke and its related structures over a 150-metre length. Indicated and measured resources from this extension total 149,350 tonnes grading 4.46 grams gold. A feasibility study is under way on this new discovery.

Drilling is also delineating additional resources on an eastern 150-metre contiguous section, as well as on other areas (veins A, B, C and F) situated 70 and 200 metres south of the Main Dyke.

From initial reserves of 57,000 tonnes grading 4.85 grams gold per tonne, total production from Sigma III has been 149,000 tonnes at 3.86 grams gold, equivalent to 18,500 oz. gold at a total production cost of US$142 per oz.

The recent exploration work has defined a resource of 554,550 tonnes grading 3.68 grams gold (or 65,625 oz. gold) to a depth of 40 metres. Scheduled to be processed at a daily rate of 800 tonnes over the next two years, this resource will be added to

the 1,250 tonnes mined daily from the Sigma underground operations.

With this added open-pit production, McWatters expects operating cash costs at the Sigma-Lamaque complex to drop to below US$270 per oz.

Further exploration work, to be completed during the first quarter of 1999, will aim to define new resources along extensions of other known mineralized structures.