A $1-million exploration program by St Andrew Goldfields (SAS-T) will test extensions of known gold zones at the Fenn-Gib project near Matheson in northern Ontario.
The Toronto-based junior recently concluded an option and joint-venture agreement allowing it to acquire a 50% interest from current owner Pangea Goldfields (PGD-T).
To earn the interest, St Andrew must make cash payments of $200,000 and spend at least $6 million on exploration over four years. This year’s $1-million program will involve deep drilling to test known zones below 300 metres, as well as real-section induced-polarization geophysics.
At last report, the top 250 metres of the Fenn-Gib deposit contained a probable reserve of 1.9 million tonnes grading 5.13 grams gold per tonne, using a 3-gram cutoff grade. The deposit is still open at depth and along strike.
While ramp access to the known zones is under consideration, Pangea notes that the top 100 metres host an estimated resource of 170,000 contained ounces amenable to open-pit extraction. The partners will consider recovering this resource by open-pit mining.
St Andrews believes the Fenn-Gib project has good potential to increase reserves at depth and plans to use geophysics to identify deeper or blind extensions.
The agreement also covers several milling scenarios, including a favored option of processing reserves at St Andrew’s 1,000-tonne-per-day, carbon-in-pulp mill situated 45 km west of Fenn-Gib. The mill is processing ore on a custom-milling basis.
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