Midas Letter covers Encore
Encore Renaissance Resource Corp: Profitable Exploration
By James West
MidasLetter.com
Tuesday, November 10, 2009
EncoreRenaissance (TSX.V:EZ) is in an enviable position. Their flagshipasset, the Bonaparte Gold Mine 35 kilometres outside of Kamploops,B.C., has a group of veins with a sufficiently high enough grade thatthe company expects to explore their ground profitably. The companyanticipates to start realizing some good cash flow from operationshortly.
According to mine operator Roger McClay, “There’s at least 14 –15 parallel veins that run parallel to each other, and we’ve opened upfour or five of them at this point, and right now we’re collaring adecline to access the lower extensions of the veins as they dip. Sowe’ll be underground in a pretty short while, which will give us theability to continue working up there through the winter. The idea isthat we will be able to ship ore for custom milling to continuouslyunderwrite our exploration starting within the coming weeks.”
The best drill hole in the world is an underground tunnel,”continued Roger McClay “You see everything. The mineralogy, thedirection of the veins, you can access the metallurgy more completely.So we’re approaching this thing as a production scenario where we’llconduct our exploration while we’re mining. This is probably the mostcost-effective and efficient way to explore a system of this nature.”
Exploration results in the form of bulk sampling demonstratedthe very high grade nature of the veins at Bonaparte.Four pit facesamples were also submitted to EcoTech Labs for analysis. They averaged36.5 grams per tonne g/t gold (0M: 45.6 g/t; 2M: 56.7 g/t; 3M: 23 g/t;and 4M: 18.9 g/t). Additional samples taken from this vein and samplestaken from several of the similar parallel veins have been collectedand sent for assay. These samples across the mined vein are believed tobe representative of the grade of the mineralized rock within thepotential mine site.
Metallurgy Determined
The preliminary testing by themill has indicated that the recovery of the gold from the samples andpotentially the whole proposed bulk sample was 97 per cent (a largesample of material was sent to the facilities grading 1.4 ounces perton). The mill reported as follows: "Results for latest test series arecomplete, recovery for best test with the use of lead nitrate to assistrecovery was excellent at 97.5 per cent. Recovery for the test withoutlead nitrate was 85.7 per cent.
For the best test-the-lime consumption was 10 pounds per ton,but appears we can use less. The cyanide consumption was 20.7 poundsper ton, but also appears we can use less. The next test series will beconducted on the actual as received material to confirm the resultsabove and fine-tune them for the actual mill run." Also the gravityseparation test has shown a very positive result with over 80-per-centrecovery of the gold-bearing sulphides from a simple coarse grind ispossible.
Encore, which has earned a 51-per-cent interest in the propertyto date, has the right to earn up to 60 per cent in the Bonaparteproperty by conducting the bulk sample and a proposed drilling program,which will enable the company to delineate the mineralization on theproperty.
Follow the company’s progress at https://www.encorerenaissance.com or email the company directly at info@encorerenaissance.com.
SOURCE:
https://www.midasletter.com/news/09111001_Encore-Renaissance-profitable-exploration.php