Norstar grades and recoveries 10% higher than study indicated

The 200-ton gold mill in Scadding Twp north of Sudbury will likely produce significantly more gold from the Norstar mine than was originally projected, The Northern Miner has gathered.

According to project operator Orofino Resources, ore grades and recoveries could be as high as 10% greater than was indicated in the projects feasibility study completed one year ago. The projects joint- venture partner (50%) is Groundstar Resources of Vancouver.

“It could not have come at a better time,” Dr Gerald Harper, chief geologist for Northgate Exploration tells The Northern Miner, referring to the increase in the price of gold in the second half of 1986.

With higher gold grades and higher prices, Orofino, which is about 68%-held by Northgate, should net close to $1 million from the project. The deposit, which was originally thought to contain 65,000 tons, was mined by contractors in just three rounds, yielding about 69,000 tons grading 0.20 oz gold per ton. Mining took place between August and October last year and ore is now being processed in the Scadding mill at a rate of 5,000 tons a month. Orofino says mining costs were just $61 a ton.

When this ore is completely milled this August, Orofino hopes to have the Intermediate Zone on its Scadding property ready to go into production so that the mill does not sit idle.

Even further down the road, Orofino is working towards developing a gold deposit in the Swayze area.