BHP seeks partner for Hope Bay gold project

BHP Minerals Canada, a subsidiary of Australian-based Broken Hill Proprietary (BHP-N), reports it is accepting joint-venture offers to develop the Hope Bay gold property, south of Victoria Island in the Northwest Territories.

The Australian giant has already had discussions with several gold companies regarding a possible partnership, and asserts that “an agreement is likely if reasonable commercial terms can be negotiated.” An ice-based diamond drilling program was recently completed, with assays and geological analyses pending for most of the drill holes. A total of 25,000 metres was drilled in the northern portion of the property and 10,500 metres were completed in the Boston zone. In addition, a reverse-circulation drill completed 6,100 metres of regional scout drilling.

At the Boston zone, recoveries are described as good, with no metallurgical challenges. The computer model of the resource, based on closely spaced (10-metre centres) underground drilling, reveals a high-grade, but “poddy,” gold deposit. BHP estimates annual production would likely be fewer than 450,000 tonnes.

“The exploration focus will be on finding more ore at Boston that can be mined contemporaneously with the identified resource in order to support a higher initial production rate,” BHP states in a release.

BHP also owns a 51% interest in the Ekati diamond project under construction north of Yellowknife. Scheduled to open this fall, Ekati is projected to produce between 3 million and 4 million carats of diamonds per year from five kimberlite pipes at the property. Other pipes are being explored.