Tyranex, GSR set to mine Tyranite bet shear zones

Mining operations are set to resume next month at the old Tyranite gold mine, 12 miles west of Gowganda, Ont. Starting in mid-September, partners Tyranex Gold (COATS), GSR Mining Corp., and the Calgary- based Brown group expect the first ore to be shipped out for processing at the nearby Kerr mill.

Over a period of between eight months and one year, ore will be mined via open pit methods from Tyranite’s Duggan and North lens zones at a rate of 10,000-ton-per- month. GSR, the company that acquired the assets of Golden Shield Resources after it went bankrupt, is entitled to 50% of the proceeds of the mine operations while Tyranex and the Brown Group will each retain 25%. GSR is a 70% owned subsidiary of Toronto-based Deak Resources (TSE) while Tyranex is 40% owned by Northfield Minerals (ASE), also of Toronto.

“Mining and milling costs are expected to be announced when the companies become more familiar with the deposit,” said GSR President Gerry Cooper.

Based on 43,000 ft. of drilling completed by affiliates Gunnar Gold (ASE) and Mill City Gold (ASE) since 1987, reserves in both zones are estimated to be 526,000 tons of grade 0.20 oz. gold per ton. Gunnar and Mill City are members of the Brown Group.

Duggan and North lens are parallel shear zones, about a mile from each other. However, according to Tyranex Chairman Robert Cudney, not all of the reserves outlined in the zones can be reached under the present mining plan.

“I think we can access about 150,000 tons,” Cudney told The Northern Miner. “If that works out, we will drive a decline into the North lens.

While the old Tyranite mine workings have been rehabilitated, joint operators Tyranex and GSR will not use a 1,125-ft. shaft and five levels during the open pit phase. They were used to extract 31,352 oz. gold in 1939-42.

As values as high as 0.25 oz. over 12 ft. have been intersected 1,400 ft. below the main workings, Cudney hopes more reserves can be proven up in the Duggan and North lenses. Future plans call for the sinking of a 1,400-ft. decline to reach the old mine’s 525 level.

However, the joint venture plans to complete more infill drilling before a ramp is collared.