Lexam VG Gold has filed an NI 43-101 resource report on SEDAR for its four Timmins-area gold properties. It includes a preliminary economic assessment (PEA) announced by the company in April.
The properties include the Buffalo Ankerite, Fuller, Paymaster, and Davidson Tisdale Gold Deposits, all located just south of the City of Timmins. Lexam currently holds 100 per cent interest in the Buffalo Ankerite and Fuller properties, along with 60 per cent interest in the claim forming the Paymaster property, and 68.5 per cent interest in the Davidson Tisdale property.
Prepared by Roscoe Postle Associates, the report recommends moving to the prefeasibility stage.
It includes 76,000 tonnes of measured mineral resources at 2.64 grams per tonne (g/t) of gold for 6,500 ounces of contained gold; 3,348,000 tonnes of indicated mineral resources at 2.28 g/t Au for 245,500 ounces of contained gold; and 1,020,000 tonnes of inferred mineral resources at 1.99 g/t Au for 65,100 ounces of contained gold.
The PEA is based on conventional truck-and-shovel open-pit operations with direct shipping of mineralization to a local toll processing facility for gold recovery. Mining operations will be completed by both mining contractor and Lexam.
Production is proposed to start in 2017 with an estimated mineralized production rate of approximately 2,000 tonnes per day for 6.5 years. The overall strip ratio is 9.6 units of waste to each unit of mineralized production.
During this time, approximately 318,000 ounces of gold are direct shipped to a toll processing facility. More than 95 per cent of contained gold production is from the main cluster. Processing is estimated to recover 293,000 ounces of gold, for an overall average gold recovery of 92 per cent.
An additional $1.5 million in drilling is being budgeted for 2014, followed by a $1.9-million prefeasibility study for 2014-2015.