The Regional Environmental Review Committee in the Yukon has delivered its screening report on the Mount Nansen gold project operated by BYG Natural Resources (TSE), clearing the way for possible production by mid-1996.
The committee made favorable comments on the proposed development, stating that the project met existing Territorial regulations and guidelines.
BYG has rehabilitated the mill building at the property, 190 km northwest of Whitehorse, Y.T., and built sewage and water systems and an access road to the tailings dam. The bunkhouse and mine offices have been renovated and a ball mill, leach tanks, carbon columns, silos and bins have been moved on to the site.
The company is now negotiating for a $7-million gold loan to complete the mine and plant. It will be a condition of the loan that BYG receive a water permit from the Territorial government; the positive report from the Review Committee is a necessary step in getting that permit.
Infill drilling at the Flex deposit, one of four proposed for production at Mt. Nansen, has confirmed earlier estimates of grade and tonnage. The preliminary estimate at Flex now stands at 109,000 tonnes grading 5.94 grams gold and 269 grams silver per tonne.
The average width of the Flex zone is 4.5 metres. The deposit is on an apparent splay from the structure that hosts the Huestis and Webber deposits, and lies between the two. BYG is investigating the possibility that mineralization is continuous along the Huestis-Flex-Webber trend. BYG has also staked an additional 406 claims north and south of the property in an attempt to cover extensions of soil anomalies.
Plans call for the open-pit Brown-McDade mine to enter production first, so as to provide feed for the mill, which will initially operate at 700 tonnes per day.
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