Vancouver — A near-surface gold discovery is adding to the potential of the advanced Meadowbank project near Baker Lake, in the Kivalliq district of Nunavut.
Meadowbank is owned by
The Cannu gold zone was discovered about 350 metres north of the proposed Portage open pit, which hosts the bulk of reserves (1.53 million contained ounces) defined to date at Meadowbank.
The area of interest was targeted following re-interpretation of a 1998 drill-hole that yielded a near-surface intersection grading 4.41 grams gold per tonne over 6.65 metres. Mapping and surface sampling earlier this summer helped define the fold structure hosting the zone and established targets for testing in this year’s ongoing drill program.
Highlights from the new zone include: 7.44 metres grading 7.06 grams gold; 4.95 metres of 2.65 grams; and 1.75 metres of 21.36 grams; 3.5 metres of 6.66 grams; 6.23 metres of 7.27 grams; and 5.5 metres of 4.73 grams.
One of the holes returned three intervals; 5.47 metres of 4.14 grams, 2.87 metres of 16.44 grams, and 2.35 metres of 2.07 grams.
The aforementioned intersections were encountered at depths ranging from 5 metres to 72 metres below surface.
Cumberland notes that the fold structure hosting the zone is comprised of the same inter-bedded iron formation and volcaniclastics found at the other deposits at the property. Mineralization is also described as similar, with evidence of multiple zones and stacking.
More drilling results from the Cannu zone are expected shortly.
The company plans to develop an open-pit mine capable of producing about 315,000 oz. gold annually over an 8.3-year mine life. Based on a recent feasibility study, cash costs are estimated to average US$224 per oz. over the life of the mine, while capital costs are estimated at about $302 million.
Initial production would come from the Portage, Goose and Vault deposits, which collectively contain an estimated 2.76 million oz. gold in proven and probable reserves amenable to open-pit mining.
Cumberland also holds a 22% carried interest in the Meliadine West gold project, and a 50% interest in the Meliadine East project, both in Nunavut.
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