After conducting a 5,000-ton bulk sample test on Northumberland Mines’ Cochrane Hill, N.S., gold prospect, Inco Gold has decided to relinquish its option on the property.
Inco was earning a 60% interest in Cochrane Hill by bringing the property to a production stage by January, but poor results from a $2.2-million bulk sampling program has put an end to the company’s involvement.
However, the Inco decision may not mean the end of this project. Northumberland President William Young and geological consultant James Tilsley are currently reviewing the Inco report before deciding what to do next.
“We disagree with the tower technique which Inco used to process the bulk sample,” said Young.
While drill assays averaged 0.3 oz gold per ton Young said Inco’s method of crushing the ore, 50-tons at a time into — 1/2-in samples, diluted the ore zone’s nuggety effect so much that the 5,000-ton sample assayed at 0.05 oz *
“We are prepared to go back in there and do it our way,” said Young who may revert to a conventional cyanide process used to test a 15,000-ton Cochrane bulk sample four years ago. “Otherwise we could see the death of a very interesting property,” he said.
Although Terence Podolsky, Inco Gold’s exploration vice-president refused to comment on the decision, his company has so far rehabilitated a 213-ft mine shaft at Cochrane Hill, installed a head frame and hoist.
As a result of the decision, Northumberland’s interest in the deposit remains at 70%, while MSV Resources and Atlantic Gold Mines each retain a 15% interest.
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