Production early ’88 for Perron gold mine

Operators of the Sleeping Giant gold-silver mine project located about 40 miles north of here are gearing for a production start-up in January, 1988, The Northern Miner learned during a recent tour.

The Perron Gold Mines’ project will be the second mine opened by the Vancouver-based Hughes-Lang group in northwestern Quebec in less than a year; the group’s D’Or Val Mines gold mine went into production in April.

Discovered during the latter half of the 1970s, the Sleeping Giant mine currently boasts reserves of almost two million tons averaging 0.28 oz gold per ton (after 15% dilution). The deposit is open at depth. The reserves calculation was determined from drilling confined to less than 3% of the 47-sq-mi property — and to only about 900-ft depth — and the company is confident of boosting the reserves figure through further exploration.

Fenton Scott, a director and consulting geologist for Perron, said the uncovering of a single vein more than a decade ago has led to the discovery of 35-40 different vein structures on the property. The longest of the veins stretches for about 1,000 ft, he said.

Two shafts have been sunk on the property. The first, put down in 1984, extends down 750 ft and includes four levels. A sand and gravel overburden reaches 75-80 ft from surface. The shaft will serve as the ventilation shaft for the mine.

The second shaft is located about 800 ft from the first, and, according to Mr Scott, was sunk “where the overburden was shallowest.” Completed in June, the second shaft was dug to 1,600 ft. Eight levels lead off from it, with the upper levels connecting with the levels of the first shaft.

The geology of the deposit is such that the east-west vein structures are fairly narrow (about 18 inches in width), while the north- south vein structures are 10-to-12 ft wide. The deposit contains little visible gold.

Construction of the mill, which will have a capacity of 1,000 tons of ore per day, continues. A straight cyanidation process will be used. Tests indicate recoveries of 94% gold and 50% silver at a grind of 70% –200 mesh and a retention time of 48 hours. (Copper and zinc values in the ore are considered too low to be recovered economically.) Perron expects to pour dore bars containing gold and silver in the ratio of one-third gold to two- thirds silver. The bars will be sold to the Royal Canadian Mint.

Estimated cost of bringing the Sleeping Giant project into production is $45 million, including $12-$14 million for the mill. Estimated production cost for the gold at current grades is $238 per oz.

The company is projecting production in 1988 of 61,021 oz gold and 97,374 oz silver; and in 1990, 105,505 oz gold and 168,350 oz silver.

Early surface exploration on the Sleeping Giant property was performed by a Noranda Inc. affiliate, Matagami Lake Exploration. In 1983, the Hughes-Lang group signed an agreement to acquire an interest in the property from Noranda; the Group eventually acquired all of Noranda’s interest in the project. Another company, Nova-Cogesco (formerly Cogesco Mining Resources), currently holds a 2% net profits interest.

A 35,000-ton sample from the Sleeping Giant property is currently being tested at the D’Or Val Mines mill near Val d’Or.