The Graduating Class 1987 GOLD REPORT BLACKDOME

Since production started last May, Blackdome Mining’s gold project, 150m iles north of Vancouver, B.C., has exceeded expectations. Indeed, it is probably the highest grade gold mining operation in western Canada, if not the country.

Although head grades tend to fluctuate because of limited working places, the average for the year was 0.86 oz gold per ton (December’s average was a hefty 1. 3 oz, partly because of a mill clean-up).

The plant was shut down over the Christmas season for maintenance, but it is now operating at a sustained rate of 200 tons per day. An extensive underground d evelopment program is under way and the 1920 level is being extended to the sout h and north. President Carl Ashenhurst says the south drift has encountered exce ptionally high grade material over some of the best widths yet encountered. Grad es of two oz per ton have been noted across 12-ft widths, he says.

That high grade ore shoot was discovered last year and development crews are proceeding towards that area as part of the company’s normal mining plan. One of Blackdome’s major objectives is to open up at least 10 working places by year-en d which will add some flexibility to the operation. There are seven stopes in op eration at the moment and about 13% of 1987 production will probably come from d evelopment work.

Two new levels will also be opened up — one below the 1920 level and the other above it. The latter will access an area first opened up by Noranda Inc. at a deeper elevation. Access to the lower reaches of the mine could be by adit, ramp or winze, Ashenhurst says. An adit entry is particularly attractive bec ause blind veins could be encountered on the way.

An exploration program is planned for this year to replace and, it is hoped, expand on reserves that were depleted by mining. About 20,000 ft of surface drill ing has been budgeted, mostly on the Nos. 1 and 2 vein systems. The mill is rate d at 200 tons per day but could probably handle about 1%-15% more feed subject t o the availability of adequate working places. The company employs a cut-and-fil l mining method which, because of the erratic nature of the ore zones, is quite flexible. There is plenty of surface rock or talus for backfill which represents a major saving over hydraulic systems.

From day one, Blackdome has been a profitable mining operation. And, with gold prices remaining at current levels, it will probably become even better.