Teeshin mine production anticipated by June ’88

Production from the Dome Mountain property near Smithers, B.C., is expected to begin by next summer, Teeshin Resources says. Teeshin holds a 37.5% fully diluted interest in the project. The remaining interest is held by partner Canadian United Minerals. Total Erickson holds the right to back in for a 50% stake in the project.

The partners plan to begin construction of a 350-ton-per-day mill by year-end with the completion date scheduled for May 1, 1988. At this rate, the mill would be capable of producing approximately 50,000 oz gold per year.

Drilling on the Boulder zone, one of several mineralized areas on the property, has delineated proven and drill-indicated reserves of 283,249 tons grading 0.436 oz gold per ton. Underground work on the zone includes 1,683 ft of drifting and 752 ft of raising. This work is focusing on two parallel veins within the zone. Chip samples from the back of the B2 vein averaged 0.68 oz gold and 3.4 oz silver across a length of 97 ft and 5.2 ft in width in the westerly end of the zone.

Metallurgical testing is planned for 7,500 tons of material which will be mined during the underground exploration program. Metallurgical testing completed on core samples suggests a gold recovery of 96% after cyanidation and flotation.

A consulting study anticipates the completion of a formal feasibility study by October, pending completion of the underground program. This work is designed to evaluate the grade and continuity of the Boulder zone which averages nine feet in width.

Based on receipt of a positive feasibility report, the consultants envisage a mine utilizing a combination of shrinkage and open stope mining methods. Mine capital costs are estimated at $12.8 million and production costs stand at $178 per oz of gold.