Beartrack is a past-producing open pit mine. That mining operation shut down in 2000. The price of gold was <US$300/oz at that time. Flash ahead to 2018, with the price of gold gravitating around US$1,300/oz and results from Revival Gold’s recent exploration, and Beartrack is back in focus.
In looking to move this past-producer back into production, Revival Gold’s first step was to complete a 43-101 resource estimate at Beartrack to establish a foundation to build towards the potential resumption of commercial mining operations. The Company’s stated goal is to advance Beartrack- Arnett Creek to a global gold resource in excess of 3 million ounces.
OnMay 29, 2017; RVG announced the maiden 43-101 resource estimate for Beartrack:
- A 33.4 million tonne Indicated gold resource at an average grade of 1.13 g/t Au, totaling 1,214,000 ounces of gold
- A 16.9 million tonne Inferred resource at an average grade of 1.41 g/t Au, totaling 765,000 ounces of gold
The headline from this announcement is that Revival Gold is already approximately two-thirds of the way to its resource goal for the Project. But dig beneath the surface and there are many more nuggets of information for investors to process.
One important operational detail for the Beartrack Gold Project is that mineralization offers the potential for a restart of the old heap leach operation as well as the potential for a large milling operation. In speaking with Stockhouse Editorial, RVG’s President and CEO, Hugh Agro, explained that Revival Gold is pursuing both tracks noting that a heap leach re-start would involve relatively less capital.
Management’s preliminary estimate is that the break-even grade for heap leach material is a low 0.26 g/t cyanide soluble gold.
The remainder of the mineralization at Beartrack would require a milling operation to process feed. However, even with the additional cost required for a mill, the Company estimates a cut-off grade of 0.61 g/t gold - well below the average grade of the current resource.
This is a Project that has seen extensive drilling, both historic and recent. Of the approximately 71,000 meters that have been drilled at Beartrack, over 13,000 meters of that total is more recent drilling.
While the Company has just produced a new resource estimate, the drills are back to work. Revival Gold is underway with an additional 8,000 meters of drilling at Beartrack this year. A further 2,000 meters is planned (subject to permitting) for latter this year at Revival’s Arnett Creek Project.
Arnett Creek is a 2,377 hectare land package, also located in Lemhi County. RVG holds rights to a 100% interest in these unpatented mining claims, located next door to Beartrack.
The Company will ultimately pursue a preliminary economic assessment (PEA) for Beartrack, to assess the economics of the Project. However, management is intent on building the resource before moving on to that major milestone.
CEO Agro outlined part of the 2018 game plan here.
This NI 43-101 gold resource sets a solid foundation for Revival Gold’s 2018 exploration and metallurgical test-work plans for Beartrack. In addition, Revival Gold has initiated a program of modern metallurgical test-work at Beartrack by sending six composite samples to SGS Laboratories Inc. in Vancouver, Canada, with initial results expected in the third quarter.
Following completion, the 2018 drilling will be used to complete an updated resource estimate for the Beartrack Deposit. Improving and updating the metallurgical information could also further improve the on the input parameters to any future PEA.
Mining is a game of peaks and troughs. A trough that leads to the demise of a mining project becomes an opportunity for another mining company.
Beartrack is a past-producing mine that has exciting exploration potential and is located in a mining-friendly jurisdiction. It is a project long overdue for revival. Enter Revival Gold.
www.revival-resources.com
FULL DISCLOSURE: Revival Gold Inc. is a paid client of Stockhouse Publishing.