Virginia Mines notes Eleonore production set for Q4
Virginia Mines notes Eleonore production set for Q4
2014-04-03 10:20 ET - News Release
Mr. Andre Gaumond reports
VIRGINIA MINES INC.: UPDATE ON THE DEVELOPMENT OF THE ELEONORE DEPOSIT
Virginia Mines Inc. wishes to give an update on the development of the Eleonore deposit following the filing by Goldcorp Inc. of an NI 43-101-compliant technical report on this project. Virginia owns a 2.2-per-cent net smelter returns royalty on the first three million ounces of gold produced at the Eleonore mine. This royalty will increase according to the number of ounces of gold produced and shall not exceed 3.5 per cent.
Highlights from the 43-101 technical report
- Initial production shall begin in the fourth quarter of 2014.
- Initial production rate will be 3,500 tonnes per day on two levels from the Gaumond shaft with the objective to reach 7,000 t/d on four levels from the main shaft to produce an average of approximately 600,000 ounces per year.
- Current mineral reserves are at four million ounces. Based on current reserves, the mine life is of 10 years (excludes 4.1 million ounces of resources). Intensive diamond drilling is under way to transform resources (4.1 million ounces) into reserves to extend the mine life to a minimum of 20 years.
- Mineralization at Eleonore has been drill tested to 1,400 metres in the deepest hole drilled to date. However, 85 per cent of the reserves have been delineated above 600 metres. Current drilling program is carried out below 600 metres.
- Intensive exploration and delineation drilling will be carried out over the next three years for a total of 115,000 metres of drilling per year as follows:
- 25,000 metres exploration drilling to test the deposit's extension and add new resources;
- 50,000 metres of infill drilling (25-metre spacing) to convert resources into reserves;
- 40,000 metres of final delineation or definition drilling (production drilling).
Furthermore, some drilling is planned to test three specific areas outside of the Roberto deposit.
- Hanging Wall zone (8,000 metres);
- North zone (10,000 metres);
- 494 zone (8,000 metres).
Going-forward catalysts
- First gold production in the last quarter of 2014; commercial production in 2015;
- Production forecasts for 2015;
- Updates on resources and reserves at Eleonore in early 2015.
The beginning of production at Eleonore in the fourth quarter of this year is a very important milestone for Virginia. The company looks forward to a very prolific and long-life mine at the Eleonore world-class deposit.
We seek Safe Harbor.
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