Athabaska hopes to revive Ladner Creek

Underground exploration drilling and development is continuing at the Ladner Creek gold project near Hope, B.C.

Athabaska Gold Resources (TSE) has committed to spending $1 million on the property by June of 1996. Under an amended agreement with the vendors, it can acquire a 100% interest in the project by issuing 4 million free trading shares. The vendors also hold warrants to purchase one million shares of Athabaska at 70 cents each, expiring on June 30, 1997.

The Ladner Creek project was formerly operated by Carolin Mines in the 1980s, and the 1,360-tonne-per-day flotation-cyanide mill remains on site. The $40-million Carolin mine failed after two years in operation, mainly because of excessive dilution and poor mill recoveries. The mine also experienced environmental problems.

Athabaska believes the operating problems can be overcome and is conducting a drilling and metallurgical test program with the objective of re-opening the mine.

Preliminary estimates put the resource available from existing underground workings at about 900,000 tonnes grading 4.4 grams gold per tonne. A further resource of about 800,000 tonnes of tailings grading 1.7 grams gold is also viewed as potential mill feed.

Athabaska’s current work program includes 110 metres of new drifting to extend workings on the 875 level, 1,631 metres of underground drilling in 19 holes and 564 metres of surface drilling in six holes.

Results from the drilling are pending, and the company is in the midst of a large-scale metallurgical testing program using freshly mined bulk samples.