Cadiscor Reports New Gold Reserves & Resources at the Sleeping Giant Mine
September 23, 2008 Filed Under: Precious Metal
Cadiscor Resources Inc. announce the results of an NI 43-101 Report from Genivar LP, based on analysis of existing data and new underground exploration drilling at IAMGOLD Corporation’s Sleeping Giant Mine. In December 2007, Cadiscor started a 19,000-meter underground exploration program to test the continuity of the gold zones in the Mine and at depth, below the deepest Mine level (-975 meters). The drilling campaign was recently completed. Cadiscor expects to take possession of the currently-operating Mine at the end of October 2008.
GENIVAR is a well-known engineering consulting firm based in Montreal, Quebec. GENIVAR’s office in Val-d’Or, Quebec was mandated by Cadiscor to validate the geological interpretation of known mineralized zones at the Mine accessible by the underground workings, as well as the mineralized zones defined by Cadiscor’s drilling below the 975 level. GENIVAR also validated Cadiscor’s resource calculation. With the Mine now being operated by IAMGOLD, detailed administration, mining and development costs were made available to GENIVAR. Mining and development costs used to evaluate each planned stope were determined with real cost data from the Mine and mill. Actual mining recoveries, dilution factors and metallurgical recoveries were factored in, and a gold price of CAN $850 per ounce was used.
GENIVAR states that the identified reserves could generate an operational net profit of $16 million at a gold price of CAN $850 per ounce. These reserves represent 16 months of future production on the basis of an annual production of 180,000 tonnes that would generate 52,000 recovered gold ounces per year.
If all converted to reserves, resources would represent 17 additional months of production at the same mining rate.
Drilling below the current Mine has been very successful. For example, drilling on the 30W Zone extension has outlined an Indicated Resource of 123,000 tonnes at a grade of 13.4 g/t gold. These zones are still opened at depth and along strike.
Mr. Michel Bouchard stated, “When we started the underground exploration drilling program in December 2007, our objective was to identify enough new reserves for at least one year of production, and resources for one additional year. We are very pleased to say that we have exceeded our targets as we now have more than 33 potential months of reserves and resources. The exploration potential is very strong, as demonstrated with the 30W zone extension drilling results, with the zone still open. We look forward to taking possession of the Mine at the end of October 2008. We are working on securing financing with several parties to develop the Sleeping Giant Mine and restart the mill and gold production.”
GENIVAR recommends starting development work immediately on taking possession of the Sleeping Giant Mine in order to mine the reserves identified, and to continue drilling to upgrade the current resources to reserves.
GENIVAR has supplied a development schedule that provides for the mill to restart progressively after three months of development to an eventual rate of 15,000 tonnes per month.
The Sleeping Giant Mine entered production in 1988. The Mine has since been deepened twice to follow the gold zones. In 2007, IAMGOLD produced 66,826 ounces at the Mine. At the end of 2007, cumulative production totalled 891,000 ounces. The Sleeping Giant Mine is located approximately 80 km north of Amos, Quebec, in the Abitibi region.