Cross Lake Minerals Ltd.: QR Mine Permit Approved-Project Development Ongoingadmin
Cross Lake Minerals Ltd. is pleased to provide this update of operations for the QR Mine Project, which is located approximately 60 kilometers southeast of Quesnel, British Columbia.
Over the past several months, the final information was compiled and submitted to the Ministry of Energy, Mines and Petroleum Resources in support of the application by the Company to restart operations at the QR Mine. By way of a letter dated December 20, 2006, the Company received the formal approval of the amended permit approving the mine re-opening. “The receipt of this permit is the last major hurdle the Company had to overcome to allow for a smooth transition to operations of the QR Mine,” stated Gordon Keevil, President.
While the permit application was being completed, Cross Lake and its development team have been busy completing the preparatory work in anticipation of the commencement of operations. This has included:
– The acquisition and installation of the 42 man camp on the mine site, including the necessary infrastructure and support and a new dry in support of mining operations.
– Work has commenced on the rehabilitation of the electrical distribution system in support of Mill operations and general overall site operations.
– Final detailed engineering studies of the tailings containment system have also been completed but final construction must now wait until early spring due to weather constraints.
– Rehabilitation and addition to the onsite electric generator capacity to allow for mill upgrade and testing prior to the availability of Hydro through the power line.
In June, the necessary security was put in place to allow for the construction of the three phase power line by BC Hydro from the Gavin Lake sub-station. The power line will be completed and power available for the commencement of operations. The project will have a significantly lower cost of electricity connected to the B.C Hydro grid, compared to its previous operation when the required power was generated on site by diesel generators. This saving is even more dramatic given the high price of diesel fuel.
As part of the final preparation for operations, Cross Lake’s engineers are continuing to evaluate all aspects of the proposed operations to achieve greater efficiency and cash flow. Surface preparations are underway on the West Zone and Northwest Zone for mining. The Midwest Zone has been dewatered and is being prepared for underground mining. These three zones will be the source of the initial development as outlined in the Technical Report prepared on behalf of Cross Lake by Wardrop Engineering Inc. of Vancouver.
While work continues towards the commencement of mining operations in the West, Northwest and Midwest Zones, underground development of the North Zone has also commenced. The access road was completed in 2006 at a design grade that can be used as a haul road to the mill. The portal has been collared and initial development of the North Zone decline has now commenced.
The North Zone is a faulted extension of the Main Zone, which was mined by open pit methods during previous mining operations. Company geologists and consultants have studied the detailed technical information from the exploration and subsequent mining of the Main Zone. These studies have confirmed that the Main Zone, which has a strike length of only 300 meters and produced over 100,000 ounces of gold, is an extension of and is similar in character to the North Zone. Furthermore, a detailed geo-statistical analysis of the gold distribution and grade of the Main Zone has confirmed that approximately 300,000 tonnes within the Main Zone formed a contiguous block with an indicated grade of over 5 grams. This grade could be economically mined by underground mining methods, assuming the parameters of the Technical Report on the proposed operations of the QR Mine (News Release dated May 20, 2006). It is important to note that the North Zone is the only Zone on the QR Property that is not known to be limited by faulting. To date, it has been defined along a strike length in excess of 1000 meters and remains open. Therefore, based on historic production records from the Main Zone, there is the potential to identify a significant additional gold resource to that which will be developed by the planned mining operations. If successful, this mineralization could add several years to mine operations.
Over the past several months, in spite of current tight employment market conditions, Cross Lake has been successful in securing the services of most of the key employees and contractors that are necessary for successful operations. The Company would like to thank Mr. Ross Hollinger, P. Eng. who was appointed Mine Manager and since that time has worked to move the QR Project forward and secure the support needed for a successful operation. The QR Project is being supervised by Mr. Hollinger who is the designated Qualified Person and Mine Manager. The Company is very pleased with the development of Cross Lake’s QR Project to date and is looking forward to an orderly and efficient transition from an exploration to a production company.
This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
12(g) No. 82-2636
Gordon A. Keevil Cross Lake Minerals Ltd. President (604) 687-2038 (604) 687-3141 (FAX)
Source: Cross Lake Minerals Ltd.