The Graduating Class 1987 GOLD REPORT BELL CREEK

While it may not be a Dome or Hollinger, it’s going to be a good little mine for some years to come. The Bell Creek is the third new mine to be gin produc tion in the Timmins camp in the 1980s and the first, in some time, to bring new companies into the picture (the other two were brought in by Kidd Creek).

It’s been hard slogging ever since Bell Creek was discovered by Du Pont of Canada in 1980. Dupont later sold out to csa Minerals, but not until after the property was optioned to Canamax Resources (now the operator).

The mine finally graduated to commercial production last month when it began shipping 180 tons per day to Pamour Inc. (which controls csa) for processing unde r a 9-month contract. This, however, is a temporary measure to provide cash flow during mill construction. A 350-tpd mill is being built and is expected to be operating in late summer or fall. This could easily be expanded to 500 tpd if fut ure reserve developments permit.

Grade, so far, has been steady at 0.23 oz gold per ton, a little higher than estimated from surface drilling in the areas now being mined. Reserves on the main deposit, the North zone, began at 570,000 tons grading 0.246 oz g old per ton across an average width of 11.8 ft. Nearby is the Marlhill deposit, which is to be explored underground this year. The Marlhill has three zones with 439,000 tons grading 0.23 oz across an average width of 8.2 ft. There i s another zone, the Bell Creek, which has an additional 272,000 tons grading 0.12 oz, and this w ill be explored further through the North zone workings.

There are royalties outstanding on the property. Broulan Resources has a 2.5% net smelter return on the North zone while Marlhill Mines holds a 20% net profit interest on the Marlhill zone.

The partners had spent $12.5 million on the project by the end of last year and they estimate the total cost of going into production will be a further $5 mil lion. In addition, $1.5 million will be spent on the Marlhill underground explor ation program. Operating costs, excluding royalties, are expected to come in at $210(US) when the mill is up and running.