Energex seeks access road before production decision

In an interim report, Energex Minerals says mineral inventory on its A1 property in the Toodoggone area of B.C., now stands at approximately one million tons grading 0.20 oz gold per ton, combining possible category with drill proven- probable reserves.

President Aarne Birkeland says that with less than 20% of the length of mineralizing structures on the property tested to date by shallow drilling, the geological potential of the property is considered large.

He says shallow open-pitable, drill proven-probable uncut undiluted reserves for the Bonanza Ridge, Thesis 11 and BV deposits stand at 262,242 tons, grading 0.25 oz using a 0.03 oz cutoff.

Contained within this reserve are 60,100 tons of drill proven reserves at a grade of 0.56 oz using a 0.23 oz cutoff.

The president says preliminary economic analysis of identified reserves indicates a modest high grade operation is feasible with 2-3-year mine life, based on production rates of about 14,000 oz gold per year.

Nevertheless, he adds, access to the site remains a major economic factor, dictating size, duration and cutoff grade of mining operations. Extension of the Omineca mine access road into the Toodoggone area is expected to start in the immediate future, and as a result, he says, Energex will not place the property into production on a fly- in basis this spring.

Planning for 1987 includes over 8,000 ft of drilling to increase proven-probable reserves to support mining operations for a minimum of six years, deeper development drilling to determine potential for high grade underground mining operations, and expanded pilot plant test work.