St Andrew gold mine producing on target

After two quarters of successful operation at its Stock Twp. gold mine east of Timmins, Ont., St Andrew Goldfields (TSE) expects to be able to meet its production target of 27,000 oz. of gold this year. The mine, which began commercial production Oct. 1, 1989, is equipped with a 500-ton-per-day mill that could eventually be expanded to handle a throughput of 1,000 tons per day, the company said.

Following a successful startup in the third quarter of last year, the mine has been producing at a good pace in 1990. During the first quarter, the mill processed 51,626 tons of ore grading 0.15 oz. gold per ton, while mill recoveries of 94.4% resulted in production of 7,243 oz. of gold. That total compares with 6,174 oz. produced in the previous quarter. Cash operating costs were $377 per oz. during the first quarter, compared with $420 in the third quarter of 1989.

Revenues from bullion production were $3.39 million in the three months ended March 31, compared with $2.83 million for the mine’s first quarter of production ended Dec. 31, 1989.

Mining at the Stock Twp. mine is primarily carried out by cut-and- fill methods with access to the orebody provided by a vertical shaft to a depth of 880 ft.

Total minable ore reserves for the property are reported at 767,027 tons grading 0.16 oz. The company said a decline, currently at the 5th level, will be driven an additional 1,154 ft. to the 6th level this year. Development of the new level will add greater flexibility to the overall mining plan. The extension of the decline ramp is expected to reach completion by mid-year.

St Andrew says the mill has consistently exceeded its initial design capacity of 500 tons per day, and could eventually handle future ore from three of the company’s partially delineated deposits that are all within easy trucking distance of the mill.

The expanded mill capacity also means the company can process ore from other mines on a custom milling basis. Some of the special custom milling features of the mill include an outside conveyor, a hopper and an automatic sampler.

In March the company made an agreement to act as operator of the Hislop East property about 30 miles east of St Andrew’s Stock Twp. mine and mill site. Dewatering of the Hislop East workings and a detailed mine feasibility study, including a 10,000-ton bulk sample is planned.