South-Malartic triples gold resource at Croinor

Drilling by junior South-Malartic Exploration (MSU-M) has tripled the resource base of the Croinor gold property, 75 km east of Val d’Or, Que.

In a new estimate prepared by Geostat International, resources are pegged at 3.1 million tonnes grading 3.04 grams gold per tonne (301,000 contained ounces gold) using a cutoff grade of 1.15 grams gold. In last year’s prefeasibility study, the resource was pegged at 1.1 million tonnes of 2.44 grams gold (89,543 contained ounces) using a 1-gram cutoff.

Mineralization consists of chalcopyrite, pyrite and native gold, and is found in three related structures: shallow, sub-vertical shear zones within an altered dioritic intrusive; tension veins perpendicular to the shear zones; and brecciated diorite. The deposit remains open at depth and along strike.

In the late 1980s, Cambior (CBJ-T) stripped the deposit and collared 142 south-dipping holes, but all were drilled perpendicular to the main ore zone and generally failed to reveal the gold-bearing tension veins.

From 1996 to 1997, Croinor was the site of a small open-pit gold mine operated by Calgary-based Goldust Mines, which changed its name in 1997 to Huntington Exploration (HEI-V). While Huntington remains the property owner, South-Malartic can acquire a 70% interest by spending $1.5 million on exploration by mid-2002.

In the spring of 2000, South-Malartic discovered the flat-lying, gold-bearing tension veins and carried out extensive follow-up work that is still ongoing.

Elsewhere pin the camp, South-Malartic is completing its acquisition of Cambior’s 2,000-tonne-per-day Chimo mill, 20 km southwest of Croinor, in exchange for $375,000 and the assumption of any environmental liabilities.

Earlier, Malartic bought the Chimo property and the adjacent Nova property from Cambior for $1 and a 1% net smelter return royalty.

Malartic is evaluating the feasibility of refurbishing the mill at a cost of $2-5 million, depending on whether or not a cyanidation circuit is added. The mill has been mothballed since the late 1990s, following the closure of the underground Chimo mine.

In the same area, South-Malartic is looking at several small gold deposits that could provide custom feed to the Chimo mill.

Claude Girard and Marc Baribeau were recently named South-Malartic’s chairman and president, respectively (incorrect information about these appointments appeared in our Jan. 15 issue).