Zahavy and Getty re-activate Favourable Lake

A $7.8 million 2-phase exploration and development program has been approved by joint venture partners Zahavy Resources and Getty Resources that could lead to a production decision on the Favourable Lake gold-silver property in northwestern Ontario by 1988.

Peter T. George, president of Zahavy, tells The Northern Miner that each company is contributing 50% of the needed funds. Supplies will be mobilized to the site early in the new year, with work scheduled to start in early spring, probably in April, 1987.

The property has been on a care and maintenance basis for approximately the last three years while the operator at that time — Getty Canadian Metals — opted not to put it into production based on its assessment of future metals prices.

As a result of the recent negotiations, Zahavy is the permanent operator of the project. Strathcona Mineral Services has been retained as contractor.

Richard Atkinson, president of Getty Resources, says the program is budgeted to last between 14 and 15 months. “It’s hoped that it would lead to a production decision,” he says.

Phase one will concentrate on dewatering the No 2 shaft, which already has been rehabilitated to gain access to the No 3 vein. Drilling and raising will be done on that vein.

The objective of this phase is to increase reserves to approximately the 1.2-million-ton level, says Mr George.

Approximately 11,000 ft of surface drilling will be done during phase one, as well. This drilling will test approximately six additional veins.

During phase two, the No 1 shaft will be dewatered, inspected and rehabilitated to gain access for deep drilling on the No 3 vein.