Lenora building reserve base, to double gold output

Lenora Explorations is preparing to increase gold production from approximately 5,000 oz this year to more than 10,000 oz by 1988. In order to achieve this objective and to position itself for further expansion, the company has been building a reserve base through options and acquisitions.

At the company’s Omega mine near Kirkland Lake, Ont., Belmoral Mines has been milling ore and sharing profits on a 50-50 basis. To date, 38,000 tons have been shipped to Belmoral’s mill in Quebec. The program has generated operating revenue of $1.15 million of which $577,766 accrued to Lenora. A second stage mining program is under way at the Omega which will remove between 25,000-50,000 tons of ore via an open pit.

At Lenora’s Golden Harker property, also near Kirkland Lake, underground exploration and development is in progress. The project will focus on mining a portion of the Golden Harker’s proven reserve of 186,000 tons grading 0.165 oz gold per ton; a majority of which lies above the 350-ft level.

If the Golden Harker work is successful, the company expects to have gold production from bulk sampling of approximately 10,000 oz in 1988. However, Lenora’s major reserve base is shifting to Saskatchewan. Here, the company has acquired through option agreements two properties near Beaverlodge. The New Athona project hosts reserves of 3.1 million tons grading 0.07 oz gold per ton all of which is amenable to open pit mining. Potential exists for increasing these reserves.

At a meeting for analysts and brokers last week, Lenora President Robert Kasner, told the group that a crushing and sampling plant is being transported to the site. Heap and vat leach tests are also planned with a feasibility study scheduled for completion by year-end. Just three miles away, Lenora and affiliate company Mary Ellen Resources have acquired an option on the former producing Box mine. Indicated reserves total 10 million tons grading 0.05 oz gold per ton, also amenable to open pit mining.

Other reserves within Lenora’s developing land portfolio include 900,000 tons grading 0.12 oz gold per ton on the Worvest property north of Kirkland Lake. American Barrick Resources has the right to earn a 65% interest in this project.