Approximately $1.3 million will be spent by the end of February on the Citadel Gold Mines property near Wawa, Ont. The work will include dewatering, underground and surface drilling, plus some development.
A $2.5-million flow-through offering is being finalized which will allow the program to be extended, the company says. Twenty-eight people are currently working on the project and two drills are operating underground.
The old Jubilee mine workings are being dewatered and a crosscut is planned from the fifth level drift into the hangingwall of the ore zone. About 10,000 ft of drilling will be done from underground drill stations and another 5,000 ft from surface, says the company.
A new crusher is on order, additional mine cars have been purchased and design work for the tailings pond has been completed. The company’s assay lab is also operating and Citadel is optimistic it could generate about $500,000 in outside business. Given the large amount of exploration work under way in the region that figure certainly seems realistic. Citadel estimates it will take from $1.75 to $2 million to complete the mill.
Inferred ore reserves are 2.6 million tons grading 0.19 oz gold (cut and diluted) which would be sufficient to supply the mill at 750 tons per day for about 6.8 years.
Be the first to comment on "Underground, surface work for Citadel Gold prospect"