Bachelor Lk. and Sullivan complete deal on Flordin

A joint venture agreement between Bachelor Lake Gold Mines and Sullivan Mines will result in an underground exploration program on Sullivan’s Flordin gold deposit, in Desjardin Twp., Que.

Located appoximately 40 miles from Desmaraisville, where Bachelor operates a gold mining and milling operation, the Flordin deposit hosts reserves of 471,000 tonnes grading 6.65 g gold per tonne (0.214 oz gold per ton).

Under the terms of their agreement, Bachelor must fund $1.2 million of a $1.8-million 1986 program which will include driving of a decline ramp, underground exploration and 30,000 ft of surface drilling. Sullivan will provide for funds in excess of $1.2 million until a total of $6 million has been spent. Thereafter, Sullivan and Bachelor will share expenses as to their 80% and 20% interest respectively.

The property was acquired by Sullivan from Flordin Mines, which retains a 20% net profits interest on any production.

Bachelor Lake says that an all- weather access road to the property is nearing completion. Driving of the decline ramp is expected to start in early October. Underground work will include 545 ft of drifting and 460 ft of raising in the program expected to be completed by February, 1987.

An important objective of the underground program, according to Bachelor Lake, is to mine and mill a bulk sample at the company’s nearby mill. For Bachelor Lake, which has been operating a marginally economic mine at Desmaraisville, the Flordin ore could provide a much-needed boost to the company’s bottom line.

For the 6-month period ended June 30, Bachelor Lake’s operation realized a mine operating loss of $1.7 million. Loss for the company amounted to $1.8 million for the period.