Cumberland cuts more gold

Vancouver — Cumberland Resources (CBD-T) is encouraged by initial results from an ongoing $3.9-million program on the Meadowbank gold property in Nunavut.

The project, 70 km north of Baker Lake, consists of five deposits containing a total measured and indicated resource of 7.8 million tonnes grading 5.8 grams gold per tonne, plus an inferred resource of 10.9 million tonnes averaging 4.4 grams gold.

The most recent work included definition drilling over the Vault deposit and reconnaissance drilling over the PDF zone.

Some 50 holes have been completed, 35 of which were collared at the Vault deposit (inferred resource of 7.5 million tonnes grading 3.9 grams gold per tonne). Highlights include 11.2 metres grading 3.45 grams gold and 10.6 metres of 14.1 grams gold.

“All holes are returning intersections well above the 2-gram cutoff anticipated for open-pit mining,” says Kerry Curtis, senior vice-president of exploration.

Five holes tested the PDF zone, discovered in 1999 during surface prospecting 10 km north of Vault. In 2000, five holes tested a 250-metre section of the zone. Two recent holes cut 5.9 grams gold over 0.6 metre, and 14.8 grams gold over 0.7 metre. Earlier studies envisioned a production rate of 246,000 oz. gold per year at a total cash cost of US$168 per oz., with an initial capital cost of US$123.5 million. The mine life is estimated to be 8.3 years, with a payback period of 4.9 years. Roughly 85% of the production would come from an open pit.

Metallurgical tests on material from the Vault deposit indicate a 92% recovery rate.