An evaluation report estimates the Hammerdown deposit in Newfoundland could produce 225,000 oz. of payable gold at a cost of US$131 per oz., over a 3-year period.
The deposit, situated on the Rendell-Jackman properties near Springdale, is owned by Major General Resources (VSE). Total recoverable reserves stand at 440,000 tonnes averaging 16.91 grams per tonne.
The report calls for mining of a 2,000-tonne bulk sample to confirm grade prior to production.
The removal of the bulk sample is expected to cost $3.1 million and last five months, and Major General hopes to have all environmental data evaluated by the second quarter of this year.
If all goes as planned, the mine could be up and running by the second quarter of 1996. The company envisages mining 450 tonnes per day at US$60.89 per tonne. Shrinkage-stope mining methods, involving a minimum mining width of 1.2 metres, would be employed. Gold would be recovered by cyanide leach and gravity techniques.
Elsewhere on the property, Major General has received preliminary drill results from the adjoining Rumbullion zone and other nearby targets. Assay results are expected shortly, and drilling is to resume in early February.
Be the first to comment on "Major General evaluates Hammerdown deposit"