QUEBEC – Abcourt Mines of Mont-St-Hilaire, QC, reports that production at its Elder gold mine 10 km northwest of Rouyn-Noranda has reached half the planned capacity as redevelopment proceeds on schedule. Four stopes are in production and two additional stopes are being rehabilitated. Approximately 40 people are employed in a single shift at the mine.
Gold-bearing quartz veins were discovered on the Elder property in 1933, and between 1947 and 1966 production totaled 348,000 oz of gold. It operated from 1984 to 1989, and again briefly in the late 1990s. Drilling since then has outlined a measured and indicated resource of 1.36 million tonnes grading 6.60 g/t Au and containing 288,944 oz of gold in the Elder, CDR and Tagami zones. These zones also have an inferred resources of 647,900 tonnes grading 5.70 g/t Au and containing 116,826 oz of gold.
Abcourt said the preliminary economic assessment completed in November 2012 on resources in only the Elder zone indicates a total cash flow of $138 million over a 10.4-year initial period of mine life, a before tax net present value of $81.8 million at a discount rate of 8%, a before tax internal rate of return of 140.5%, and a payback period of 1.1 years.
Additional information about the Elder reopening is posted at Abcourt.com.