Feasibility study on Goldlund sets capital cost for Camreco

The second-year cost is estimated at $700,000. This is required for the purchase of underground mining equipment for the underground phase of the development. Additional working capital requirements are estimated at up to $1.5 million, Camreco says.

A second-phase study, being conducted by consulting geologists Derry, Michener, Booth and Wahl, will review the property’s geological data base in order to determine the optimum mining method. This work will review information on the No 1, 2 and 3 open pit zones and the east and west zones; the latter two are accessible from the mine’s underground workings. The report is still being prepared.

According to Camreco’s 1988 annual report, total proven and probable reserves are 781,000 grading 0.14 oz gold per ton. This included an open pit reserve of 150,000 tons grading 0.1 oz gold. Definition drilling completed by Camreco this year on the open pit reserves resulted in a decrease in tonnage but an increase in grade. According to Norontex Exploration, the company’s consultants, open pit reserves stand at 119,520 tons grading 0.138 oz gold.

Camreco acquired the Goldlund mine and surrounding property in early 1987 after the company amalgamated with Goldlund Mines, the former owner and operator of the mine. The mine shut down in February, 1985, after two years of production. Hurt by low gold prices and high costs, the closure of the mine forced Goldlund into receivership. Camreco merged with Goldlund in a deal approved by the receiver and Goldlund’s creditors.

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