Already well advanced on a joint venture re-development program on an old mine in Quebec, Nova Beaucage Mines is setting out on its own with a similar re-development scheme for a mine in Ontario.
The company has acquired the Kirana Kirkland gold mine, near Kirkland Lake, for a total consideration of 320,000 Nova Beaucage shares, and $25,000 cash. Nova Beaucage is currently trading in the 32 cents -a-share range.
According to President Glen Milne, the Kirana property contains five exploration shafts and 3,000 ft of underground workings intersecting numerous gold-bearing veins.
He says a 1936 report showed a No 1 vein containing 50,000 tons of ore grading 0.40 oz gold per ton above the 275-ft level. Five years ago drilling done for assessment work intersected the same vein 2,500 ft on strike east from No 1 shaft, returning 0.71 oz gold per ton over a 3-ft width.
Mr Milne tells The Northern Miner he has been working for over two years to acquire the Kirana property, and has already sunk about $250,000 into it. A work program now planned for the property initially will consist almost exclusively of diamond drilling, he says, supported by a $200,000 underwriting he expects to complete by the end of October.
Meanwhile, the Nova president says, the company and partner Aunore Resources (35% and 65% respectively) have completed a pre- feasibility study on the Elder mine property near Rouyn, Que., and expect a production decision will be made by about February of next year.
Total reserves in the No 1 vein at the Elder are estimated (N.M., Mar 10/86) at 1,569,254 tons. Proven and probable reserves totalling 647,662 tons and averaging 0.182 oz gold per ton, bring tonnage in the mine to an estimated 3,001,982 tons.
Be the first to comment on "Nova buys old Ontario mine works on another in Quebec"