Goldex hopes to complete mine evaluation this year

Goldex Mines is hoping to complete an initial underground evaluation at its gold property by mid- year, the company says in its annual report to shareholders. Located in Dubuisson Twp., Que., the property is the site of a major underground exploration effort which has cost $6 million since beginning in 1985.

The work is focusing on the east zone, which hosts undiluted reserves of 856,000 tons grading 0.209 oz. Lateral development is progressing on the 1,100-ft and 1,250-ft levels by Goldex crews. Underground drilling is also testing the mineralized zone below the 1,200-ft level to 2,000 ft. Current reserves have are calculated to 1,200 ft. A major part of the program included the sinking of a 1,500-ft shaft and the establishment of seven level stations between 500 ft and 1,400 ft.

Another important development for the company was the allocation of extra mill capacity at the Dumagami Mine’s mill facility which could be used for custom milling of ore from Goldex. Both company’s are in the Paul Penna fold which includes flagship Agnico- Eagle Mines.

Dumagami is building, within trucking distance of Goldex, a 2,000-ton-per-day mill which is expected to be operational by mid-1988. Probe Mines, holds a 5% net smelter royalty in the Goldex ground.