A few years ago, St. Joe Gold Corp. was spun off as a publicly traded company to oversee St. Joe Minerals’ (the parent firm’s) gold holdings in the Western Hemisphere. Overnight, St. Joe became a gold-producer with annual production in the 250,000-oz range, largely from the El Indio mine in Chile that it inherited when it was spun off by its parent (its former parent, actually, following a transaction in late October, 1987, that transferred the 90.3% stake held by St. Joe Minerals to Dallhold Resources of Australia). It was a shrewd move by Dallhold, for St. Joe is on the brink of adding to its gold production. In the remote, mineral-rich Pickle Lake area of Ontario, St. Joe is bringing into production a small-tonnage gold mine. This is one of the nearly 20 projects St. Joe had been working on long before it went public. But it’s the first Canadian gold mine that St. Joe will have developed.
The first sniffs of a potentially economic deposit came in exploratory drilling in late 1985. Drill hole No. 29, which cut 0.26 oz gold per ton over 5.3 ft was the deciding factor in further exploration. The second hole in the same zone hit 0.65 oz over 2.3 ft. The company then spent nearly $11 million proving up reserves.
Recent drilling indicates an extension of current reserves along strike. Underground development appears to more than confirm the drill-indicated grade, which has been quoted as 0.68 oz per ton over a mineable width.
Geologically, the deposit is hosted by the customary Pickle Lake area mafic volcanic. The cherty quartz horizon, possibly exhalite, averages a width of 2 ft — rather cramped quarters for mining, but with its high grade ore, the mine should be a winner. Golden Patricia Notebook Location: ……. Kawashe Lake area, southwest of Pickle Lake Major owner: ……. St. Joe Canada Commodity: ……. gold Discovery date: ……. December, 1985 Production decision: ……. March, 1987 Start-up: ……. fourth quarter, 1988 Capital costs: ……. $25 million Operating costs: ……. not available Reserves: ……. 800,000 tons of 0.69 oz/ton (drill-indicated) Means of access: ……. two 12×12-ft ramps Extent of vertical workings: …….. 330 ft Mining method: ……. shrinkage stoping Mining equipment: …….. trackless Production rate: ……. 250 tons per day Milling plans: ……… on-site Major contractor: ……. Patrick Harrison Status: ……. pre-production
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