The Graduating Class 1987 GOLD REPORT SEABRIGHT

When the managers of Seabright Resources sit down for lunch together, be it at one of the company’s exploration camps or in a restaurant in Sheet Harbour, N.S., the conversation usually touches on how well their stock and warrants a re performing on the Toronto Stock Exchange. Since starting at about $2.50 in 1986, the company’s shares have raced up as high as $12, with brief pauses at $6, $8 and $ 10.

This startling market performance reflects another story about the people and geology of Nova Scotia — a story of how this truly “down east” company has chan ged the industry’s thinking about gold mining in the nation’s ocean playground.

Optioned from Avard Hudgins, of Acadia Mineral Ventures, in October, 1985, the Beaver Dam property has, in 18 short months, become the provinces biggest potential gold producer. At the end of last October, its proven and probable reserves were 1.56 million tons grading 0.29 oz gold per ton. Preliminary underground mining feasibility studies by J. S. Redpath Mining Consultants show there is poten tial for hauling 300 tons of ore per day from four shrinkage stopes and two blas thole and fill stopes by May.

A single, deep, exploration hole put down last December indicates there is big tonnage potential below the 1,200-ft level, which translates into significant potential for mining on this property for several years. An updated feasibility s tudy, stating intended production rates, is expected this month.

Although ore will initially be hauled from stope drawpoints up an 18% ramp, the process of sinking a shaft and hoisting the ore from depth will likely become more economic as mining progresses, says Wolf Seidler, vice- president of engine ering for J. S. Redpath.

Underground development work from a 1,000-m decline (a vertical depth of about 150 m) is aimed at proving up ore widths in excess of two metres to maximize the number of low-cost blasthole stopes which can be mined. Ore widths under two m etres will have to be mined by shrinkage stoping methods.

Ore will be hauled by local contractors to Seabright’s 1,200-ton mill at Gays River. Total mining and milling costs are expected to be in the $160- $170(US)-p er-oz range, says J. S. Redpath.

Supplementing production from the Beaver Dam property will be up to 200 tons of lower grade material from another Seabright property, at Forest Hill . But indi cations are that there could be significant tonnage averaging 0.29 oz gold per t on to a depth of 230 m. Existing hoisting equipment may be capable of bringing t o surface 250 tons of material every day, says David Armstrong, operations manag er.