Previous Page 1 | 2
The 2,444-hectare Frankfield East deposit forms part of Gowest’s 90-square-kilometre North Timmins Gold Project. The deposit’s August 2011 resource shows an indicated category of 1.62 million tonnes grading an average 6.68 g/t for 348,000 gold ounces. The inferred category shows 4.34 million tonnes grading an average 6.01 g/t for 838,900 ounces.
The deposit starts near surface and is open along strike and at depth. Taylor says he expects a resource update soon, followed by an update to last year’s PEA.
The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.—Greg Taylor,
Gowest Gold IR manager
The deposit holds refractory ore, Taylor points out. “That means it’s a little harder and a little more expensive to produce. All the tests we’ve done indicate that it’s economically viable. We’ve tested this on a commercial basis using an ore-sorting process that’s really quite remarkable.”
Normally refractory gold is separated from sulphides using an oxidation process in either a roaster or an autoclave. Taylor says this deposit features “a very strong correlation between arsenopyrite and gold.” Gowest plans to use technology from the German firm CommodasUltrasort that features “an X-ray system that detects incredibly low levels of arsenopyrite and kicks aside the rest. So you end up putting though only half the rock and losing less than 1% of the gold, while more than doubling the grade. It’s really quite a remarkable process. Then we have the third-party process that can turn this into 90-gram-plus [per tonne] concentrate. The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.”
Certainly there are gold-producers trading for pennies. One example is Golden Band Resources TSXV:GBN, which closed November 12 at $0.145 for a market cap of $41.29 million. Yellow metal notwithstanding, the company’s not yet in the black. Golden Band’s fiscal Q1 net loss, announced July 31, came to $3.6 million despite gold sales revenue of $12.7 million. But the Saskatchewan-based company expects to see profits through more efficient mining and higher production. Golden Band currently operates two mines at its La Ronge Gold Project, with three more deposits moving towards production.
Previous Page 1 | 2
Pages: 1 2