A new set of assay results from the Red Lake mine in northern Ontario has upgraded the quality of the reserve estimates for the mine’s High Grade zone and confirmed mineralization in three other areas, reports
The High Grade zone, estimated to contain 1.9 million oz. gold, returned a total of 182 mineralized intersections averaging 2.75 oz. per ton over 9.2 ft.
Most of the 88 holes drilled at High Grade were closely spaced and designed to increase the confidence of the resource and reserve estimates prior to development.
The remaining holes were collared to test extensions of the zone. Goldcorp says the best results from this delineation drilling were 22.8 oz. per ton over 9.4 ft., 12.6 oz. over 7.5 ft., and 7.3 oz. over 22 ft.
Watts Griffis & McOuat recently completed a positive feasibility study that suggests High Grade could produce gold at a rate of 240,000 oz. per year at a cash production cost of US$88 per oz. At a gold price of US$300 per oz., the US$56.2-million project would have a payback period of 17 months and a mine life of 6.5 years.
Goldcorp says all the new results will be incorporated into a year-end reserve and resource estimate for the deposit.
The exploration drilling also produced encouraging results, though the grades were not as spectacular as those from High Grade.
The Deep Extension, a zone directly beneath High Grade, returned 0.53 oz.
over 9.3 ft. and 2.3 oz. over 4.1 ft. above and below a previous significant intersection.
The West Boundary area west and north of the previous mining area returned up to 0.25 oz. over 27.6 ft. and 0.28 oz. over 7.6 ft. in the E and F zones, while drilling on the 30 level intercepted the main sulphide zone well west of its previously known location.
Meanwhile, at the nearby Cochenour project, which Goldcorp acquired earlier in the year, trenching and drill-testing produced satisfactory preliminary results. The better channel sample results included 1.2 oz. over 8 ft., 0.2 oz. over 11.4 ft. and 0.35 oz. over 3.2 ft., while drilling returned values of up to 2.5 oz. over 3 ft. and 1.02 oz. over 4 ft.
Goldcorp plans to spend US$5 million over two years to explore Couchenour, a former high-grade producer which, despite geology similar to the Red Lake mine, has never been explored at depth.
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