River Gold finds new vein

Drifting by River Gold Mines (RIV-T) on the 290-metre level of its Eagle River gold mine, near Wawa, Ont., has confirmed a high-grade discovery first indicated by exploration drilling in 1999.

The newly recognized quartz vein is 10-15 metres south of, and parallel to, the No. 6 zone, the most prolific producer to date at Eagle River.

Drifting has exposed the new vein over a strike length of 180 metres, with grades averaging 26.36 grams gold per tonne across a true width of 1.8 metres. Assays are cut to 140 grams gold.

“It’s not huge, but everyone at the property is excited because it does add life to the mine,” says Michael Power, River Gold’s vice-president of corporate affairs. He estimates the new vein, which remains open to the east, will boost reserves by at least 100,000 tonnes.

Some development muck from the new vein is already being processed at the River Gold mill, and once the company completes ongoing shaft-sinking at Eagle River to a depth of 400 metres in the fourth quarter, the new vein may be accessible at deeper levels.

While the company has not yet released its year-end reserve figures for Eagle River, Power says they will likely increase “a fair bit” compared with previous years.

At the end of 1998, proven and probable reserves at the Eagle River mine stood at 1.3 million tonnes grading 10.39 grams gold, or 409,000 contained ounces gold.

Production from Eagle River and the nearby Edwards mine during the nine months ending Sept. 30, 1999, totalled 63,400 oz. gold at a cash cost of US$195 per oz. In the comparable period of 1998, they produced 70,500 oz. at US$143 per oz.