Bachelor Lake resumes production

In the absence of revenue from its Desmaraisville, Que., mine during the first nine months of 1987, Bachelor Lake Gold Mines didn’t expect its recently released interim report to be an earth-shattering document.

In fact the company reported a net loss of $6,571,502 or 90 cents per share for the nine months ended Sept 30, compared to $1,107,360 or 16 cents cents per share during the same period last year.

But with a resumption of regular milling at the Quebec mine site, Bachelor Lake says it is expecting a significant turnaround during the 1988 operating year.

After suffering dilution problems due to the complicated geology in the region, the mine was closed down in late 1986 while Bachelor Lake spent $2.5 million to open up four additional levels below the 7th level, where grades seem to be higher.

At an historical mill recovery level of 93.6%, the average mine production grade since 1982 is only 0.15 oz.

As reported (N.M., Nov 9/87), exploration on the 7th level is being directed towards a 93×5.7-ft A vein structure, which according to Bachelor Lake, averages 0.24 oz gold per ton.

The $592,500-program was funded by Bachelor Lake’s parent company, Quebec Sturgeon River Mines, through a private placement of 150,000 treasury shares at $3.95 per share.

In its recent report to shareholders, Bachelor Lake says the mill initially processed a bulk sample from the new A vein structure to confirm its amenability to the existing treatment process.

Meanwhile the company expects to treat a 30,000-ton surface stockpile of development muck and stope ore by year-end before accelerating to 165,000 tons in 1988.

Bachelor Lake says the surface ore will be supplemented with underground broken ore reserves from the 8th and 9th-level stope areas where the company is now drifting in the steepening Main vein system.

Approximately 40 miles west of the Bachelor Lake minesite, underground and surface programs are under way at the Flordin joint venture gold project, Bachelor Lake reports.

At a cost of $1.3 million, Bachelor Lake is completing a 40,000-ft diamond drill program which will focus on the ramp and underground drift area as well as the Cartwright zone.

With indicated reserves of 612,358 tons averaging 0.145 oz, the Flordin project is 49%-owned by Bachelor Lake. A 51% interest is also held by a subsidiary of Cambior Inc. following the amalgamation of Cambior and Sullivan Mines.