NEWS ROUNDUP — Orco, Metall in mill deal

Ore from the Donalda gold project of Orco Resources (ME) at Rouyn-Noranda, Que., will be treated at the nearby Norbec mill.

Orco has signed a contract with mill owner Metall Mining (TSE) for two years, with a renewal clause.

Orco says an advance payment by Metall will allow it to begin a development program aimed at increasing daily production to 450 tonnes by August. Reserves (all classes) of the No. 1 vein have been revised by the company to 1.2 million tonnes grading 6.1 grams gold per tonne (from 404,930 tonnes at 7.37 grams), including 446,000 tonnes at 7.1 grams in the proven and probable categories, and 765,000 tonnes at 5.5 grams in the possible. Orco signed a deal in 1993 with Donalda owners Metall and Thunderwood Resources (TSE) — Metall has a 65% interest and Thunderwood, 35% — to mine the past producer. Ore extracted by Orco through bulk sampling was treated at Norbec.