Duration’s Theresa could produce in ’88

Pending the successful completion of an expanded underground evaluation of the Theresa mine property, equal partners Duration Mines and Locator Explorations could be in the gold mining business by the last quarter of 1988.

Located south of Longlac, Ont., the Theresa project encompasses two gold-bearing structures which were partially developed by previous operators. Between 1945-1953, the mine produced 35,000 tons of ore grading 0.183 oz gold per ton to produce 4,785 oz of gold.

An examination of mine plans shows that a small amount of development stoping, confined to two levels, was completed during the mine operation. Infrastructure on the property includes three shafts over a strike length of 2,000 m. The deepest shaft, to 300 m, has been dewatered by the companies.

Underground drilling and sampling suggests that the property hosts mineable reserves of 540,000 tons grading 0.2 oz, William Hill, a Duration director, concludes in an engineering study.

This inferred reserve is from surface to the fourth mining level. An additional 250,000 tons of possible reserves of a similar grade is believed to exist at depth between the fourth and sixth levels.

The current underground program is designed to elevate the 540,000 tons of inferred reserves to the proven category. To meet this objective, Locator and Duration have started dewatering the No 2 shaft. Excavated to a depth of 75 m, the shaft is located 300 m northeast of the main Theresa underground workings. To the end of February, 1988, the partners plan to spend $4.5 million on the program. Overall underground exploration and development costs are estimated at $10 million.

Following the completion of this phase of the work by June, 1988, the project would be at the production decision stage. As a considerable amount of underground development is in place, the partners feel the property could be placed in production in a relatively short period of time.

David P. Rogers, president of Duration and a director of Locator, noted that ground conditions are good and no major dilution problems are expected from the zones. “We have a strong likelihood of bringing a mine into production by the end of 1988,” he told The Northern Miner. “And we have the management to do it.”

In fact, Duration has one of the strongest boards in Canadian junior mining today. In addition to Rogers, who has spent 30 years as an exploration geologist, Duration’s board includes Edward G. Thompson, well-known past president of Lacana Mining Corp., and currently president of Hudson Bay affiliate Mingold Inc. Also, William Hill, mining engineer, Edward J. Wade, former vice-president of Lac Minerals and Dr Robert Ginn, another well-known Canadian geologist who has spent years with many major mining companies, most recently as vice-president exploration with Novamin.

Based on a 400-ton-per-day milling operation, Hill believes the property could produce between 25,000-30,000 oz of gold per year. Operating costs are estimated at $73.33 per ton mined and milled. Total capital costs are $16.8 million.