Pioneer taking another look at Puffy Lake (May 25, 1992)

With a debt settlement and restructuring now behind it, Pioneer Metals (TSE) is reviewing the potential of reopening its 100% owned Puffy Lake gold mine in Manitoba.

The company recently hired Kilborn Engineering Pacific to review the possibility of completing a new feasibility study on the project. Shut down since the spring of 1989, the mine

operated for a period of 15 months to produce about 30,000 oz. gold. Pioneer says a large part of the mine’s failure to the company’s decision to deviate from Kilborn’s original feasibility study by doubling the size of the mill without expanding underground development. As a result, development remained months behind with only two stopes available for mill feed when 10-12 stopes were required.

Pioneer notes that this gave way to a form of “quasi-bulk mining” over the entire mineralized structure in an attempt to feed the enlarged 1,100-ton-per-day mill at the expense of dilution.

Prior to going into production, ore reserves were estimated at about 3.9 million tons grading 0.23 oz. gold per ton, but head grades during mining operations were closer to 0.12 oz. gold.

The current study will try to locate higher-grade portions of the deposit and find the most cost-effective mining method for the flat-lying deposit. Stephen Sorensen, president of Pioneer, said the first phase of the study is now under way and a full study could be completed by year’s end. He said the company would then review financing options with the most likely being a joint venture with a group willing to operate the project.