Interim results of the feasibility study under way at the Box and Athona gold deposits in northwestern Saskatchewan have confirmed a minimum minable reserve of 900,000 oz.
Project operator Greater Lenora Resources (TSE) has directed its consultants, H.A. Simons Ltd., to calculate a cost estimate for a 6,000-ton-per-day plant. Consulting firm Watts, Griffis & McOuat is reviewing reserve estimates and assessing the exploration potential of the property.
The Box deposit, about 20 km south of Uranium City, was in production between 1939 and 1942. Athona did not reach full production, although it did ship some development ore. The most recent reserve figures for the deposits show 12 million tons at Box and 5 million tons at Athona.
The estimated capital cost of bringing the project into production is US$50 million, and the operating cost is projected at US$215 per oz. Metallurgical trials of the proposed gravity concentration process have found recovery rates to be 92-94%.
Greater Lenora’s current plans include construction, to start in the spring of 1996. The project is on the northern shore of Lake Athabaska and barge transportation of bulk cargoes is possible for five months of the year. A fly-in/fly-out operation is foreseen, although the company expects to hire about 50% of its staff in Uranium City and Stoney Rapids.
Greater Lenora says it has had several expressions of interest from major mining companies and is examining possible sale or joint-venture agreements for the project. Greater Lenora has also engaged Rothschilds Denver as lead banker to arrange financing in the event it decides to place the project in production on its own.
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