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Exploration encouraging.

Exploration encouraging

The manager of investor relations with LAC Minerals Ltd. says it is too early to put numbers to exploration work at the Golden Patricia property near Pickle Lake.

John Pearson expects results of the work to be announced before the end of the year.

However, Pearson said underground exploration at the mine site is going well and, so far, is encouraging.

The mine has been a producing mine since late 1988.

In 1989 the mine produced a total of 78,759 ounces of gold at a cost of $242 (U.S) per ounce.

The total estimated production for this year is 76,000 ounces.

Pearson said the mine produces a grade of .61 ounces of gold per ton. "It's a fairly high grade."

The gold is found in narrow, steeply-dipping quartz veins. It is reached by two underground ramps.

LAC acquired an interest in the property as part of its purchase of a 65-per-cent interest in Australia-based Bond International Gold Inc.

The $378-million (U.S) deal was finalized on Nov. 15 1989.

LAC partly financed the purchase with settlement funds from the ownership battle for the Page-Williams Mine in Hemlo.

LAC received $210 million from Corona Corporation after Corona was awarded the Hemlo mine by the Supreme Court of Canada last year.

Pearson noted that LAC Minerals also had a fair amount of cash on hand, allowing the company to pay cash for Bond.

Pearson noted that Bond has extensive experience in operating mining sites.

Bond has five producing mines, including three in the United States and one in Chile.

"It was a natural geographic fit with LAC," Pearson said, noting that Bond was active in areas LAC was interested in. Previously, LAC had only one mine in the U.S. and none in Chile.
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Title Annotation:Mining Report; Lac Minerals Ltd.
Publication:Northern Ontario Business
Date:Oct 1, 1990
Words:297
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