As a result of a $5.2-million exploration program, MSV Resources (TSE) has once again increased reserves at its Chibougamau operations in northern Quebec.
The Portage and Copper Rand mines have a combined proven and probable reserve of 4.3 million tons averaging 0.088 oz. per ton gold and 1.74% copper. (The estimate is based on prices of US$400 per oz. gold, US$1 per lb. copper and an exchange rate of US75 cents for the Canadian dollar.) When MSV bought the mines in February, 1993, total minable reserves stood at 1 million tons averaging 0.12 oz. gold and 1.38% copper — enough to support operations for two years. Later in the year, reserves were increased to 2.1 million tons averaging 0.122 oz. gold and 1.58% copper and the mine life was extended to four years. With the latest revision, MSV expects to be mining the deposits for an 8-year period.
The increased reserves do not include any additional tonnage from the company’s Cedar Bay property, which adjoins Copper Rand. Exploration and development work there is continuing and results will be issued shortly. Elsewhere, shareholders of Cache Explorations (ME) and MSV have approved the joint-venture agreement concerning the Corner Bay Inner Block property, south of Chibougamau.
Cache can earn a 45% interest in the Inner Block by funding an $8-million underground exploration and development program, and a feasibility study to be completed by mid-1996.
Based on a recent copper price, a prefeasibility study confirms that an 800-ton-per-day mine could produce more than 21 million lb. of copper annually over five years. The program will begin this fall.
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