A better understanding of mineralization has led to a 25% increase in reserves at the Red Lake gold mine in northwestern Ontario.
By comparision, reserves at the beginning of the year stood at 1.6 million tonnes grading 57.5 grams. Essentially, the difference lies in the grade, which has risen to reflect mining results obtained to date and a better understanding of the statistical data. The update also includes material previously considered waste.
Resources are up as well, to 430,000 tonnes grading 92.6 grams. Again, most of the increase reflects an increase in the grade of mineralization.
The revisions have been reviewed by independent consulting firm Watts, Griffis & McOuat.
Reserves in the overlying Sulphide zone, where historic production was focused, remain unchanged at 1.25 million tonnes grading 13.4 grams. Similarly, inferred resources stand at 373,000 tonnes grading 11.4 grams. The Sulphide zone kept the mine fed for 48 years before labour unrest forced a suspension to production. The suspension was lifted last fall with the start of mining in the High Grade zone.
Miners are exploiting 20 horizons on four levels to haul the targeted 710 tonnes of ore daily to surface. At last report, the new plant was achieving recovery rates in the 90% range.
The underground ramp, which reached the mine’s bottom at 37 level, may be driven deeper next year. Newly discovered deep mineralization is not included in the recent reserve-resource updates, as these estimates only consider mineralization between 1,370 and 1,770 metres below surface.
Goldcorp has budgeted US$4 million for ongoing capital and US$6 million for exploration.
Goldcorp now expects the mine to produce 450,000 oz. per year at less than US$70 per oz. over the life of the mine. Production in the first seven months of this year rang in at 336,000 oz. from 126,000 tonnes.
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