As part of a strategy to reactivate the Puffy Lake gold mine near Flin Flon, Man., Pioneer Metals (PSM-T) has optioned the nearby Nokomis Lake gold property in hopes of establishing a reserve there minable by open-pit methods.
To earn a 100% interest in Nokomis Lake from Placer Dome (PDG-T) and Hudson Bay Exploration & Development, Pioneer must drill a minimum of eight diamond drill holes by next summer and spend an additional $500,000 by 2001.
Nokomis Lake, 7.5 km northeast of Puffy Lake, has a mineral resource of 349,110 tonnes grading 6.1 grams gold per tonne. Preliminary estimates by Kilborn Engineering indicate that up to 100,000 tonnes of this deposit could be mined economically using open-pit methods.
Pioneer says cash flow from the Nokomis open pit may be sufficient to finance the reactivation of the Puffy Lake mill and underground mine.
Operations at Puffy Lake, where proven and probable reserves stand at 1.5 million tonnes averaging 7.5 grams gold, were suspended in 1989 as a result of production shortfalls and financing problems.
Pioneer plans to drill off the Nokomis resource at 12.5-metre centres.
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