MD&A – Barry – nichromet extraction The technology includes a two-step process including the removal of sulfur and base metals, along with arsenic species, by controlled oxidation. This is followed by the removal of precious metals by chlorination. The controlled oxidation allows for the collection of base metals such as copper, zinc and nickel and leaves a residual solid material that is ready for the chlorination process, allowing for the efficient recovery of precious metals. The overall objective of the Nichromet technology is to combine efficiently the operation of a smelter and a gold concentrator into a single unit, while maintaining complete control of emissions, and with no sulfur-bearing tailings or ponds
The December 2011 MD&A, published on SEDAR about three weeks ago, provided an update on the Nichromet gold extraction process, which is being considered for Barry. Following encouraging results from a 20kg sample, a bulk sample of 5 tons of Barry ore is now being tested at Nichromet labs. The first test converted 3gt ore sample into a 40gt concentrate. However, this was at the cost of a 60% recovery of gold from the sample. The aim seems to be to target an 80% gold recovery.
The economics of being able to ship 40gt concentrate to BL, is clear. Indeed, this concentrate would enable the BL mill to increase production of gold ounces far in excess of the best grade anticipated from the BL underground reserves. The 40% unrecovered gold from the first sample will hopefully be minimised after the 5 ton bulk test have been completed. However, if the pollution free residue were to be stored, then the gold residue may be recovered subsequently, as technology progresses.
Source - MD&A – Page 3
First series of tests on a 20 Kg sample have generated a concentrate containing 60% of the gold
initially present at a concentration of about 40 g/t Au. Gold content in the starting material was
approximately 3 g/t Au. These results are promising but optimisation is still required in order to
increase the gold recovery from 60% to higher than 80%
Another bulk sample of 5 tons has been received since then at the pilot plant in order to perform
additional optimisation tests.
A mandate was allotted by the board of directors to Andre Tremblay with an aim of evaluating the
Profitability of a possible reopening of the Barry mine.