A final feasibility study at the Hislop-Beatty gold property near Matheson, Ont., has prompted Exall Resources (TSE) to buy a 60% interest from Hemlo Gold Mines (TSE).
The remaining 40% is held by Glimmer Resources (VSE).
The study was completed on probable reserves outlined to a depth of 250 metres, which were cut to 34 grams per tonne. Drill-indicated reserves were calculated to be 634,234 tonnes averaging 11.72 grams, including minable reserves of 499,490 tonnes averaging 11.14 grams.
The study concluded that, based on a minimum mining width of 1.8 metres, the deposit could be mined at a rate of 600 tonnes per day. Ore could be processed at the nearby Stock Twp. mill owned by St. Andrew Goldfields (TSE) with capital and operating costs averaging US$250 per oz. Gold recoveries for the East and West zones were estimated to be 94% and 98%, respectively.
In addition to raising funds for the acquisition, Exall will need funds for additional exploration. The company plans to take a bulk sample and complete an additional 35,000 metres of underground drilling to confirm additional reserves, which are now in the “possible” category and not included in the study.
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