The Graduating Class 1987 GOLD REPORT STAR LAKE

The first “baby” of the Canadian gold mining year was born in north ern Saskatchewan. Located 115 km northeast of La Ronge, the Star Lake mine poured its first gold on Jan 2. In fact the gold pour is the first such event in more than 40 years in Saskatchewan — a province better known for its vast stores of uranium. During its proposed 3-year operating life, the mine will yield about 36,000 oz of gold per year.

Operated by the Saskatchewan Mining Development Corp., with partners Uranerz Exploration and Mining (15%) and Starrex Mining Corp. (35%), the small, 220-ton-p er-day mining operation is characterized by its simplicity. Blessed with a unifo rm gold deposit consisting of a quartz-filled fracture called the 21 zone, smdc will be using low-cost, longhole mining techniques.

Hosting reserves of 230,000 tons grading 0.5 oz gold per ton, the deposit is also characterized by minimal dilution problems, competent wall rock and simple m etallurgy. Gold occurs in the free state in a pyrite-rich quartz vein striking f or 260 ft and dipping vertically.

Initial mill feed is coming from a 20,000-ton surface stockpile, accumulated during the development stage of the mine. The zone is accessible via a 3,800-ft d ecline ramp with levels established at 60 ft, 160 ft, 260 ft and 360 ft. The dec line reachs a depth of 426 ft with ore draw points at 420 ft.

The development and start-up appear to have gone smoothly. According to Starrex, at the end of October, 1986, capital expenditures totalled $12.6 million — $400,000 under budget. Underground exploration during the year will include drilling which will test the 21 zone at depths of 750 ft and 1,000 ft. Testing of p arallel and en echelon gold zones will also be conducted from the underground wo rkings.

A $1-million surface exploration program is also planned for the property this year. At least 10 showings and geophysical anomalies will be tested by 9,300 ft of diamond drilling. An important exploration area is the ground adjacent to Mahogany Minerals’ Jolu gold property, to the north. The Jolu ground hosts reserve s of 966,000 tons grading 0.5 oz gold per ton in two zones: the Rod and Mallard.