Jessica Smith
As environmental assessment of a Hammond Reef gold mine gets underway, aggressive efforts to increase and upgrade the gold resource here continues. With 20 drill rigs coming in, the reef will be the subject of about 140,000 metres of drilling this year, in hopes of bringing the gold deposit to a defined, bankable category by year’s end.
That pre-feasibility work includes placing up to four drilling barges on Mitta Lake over the centre of the resource, and more defined drilling of mineralization discovered in the southwest of the project last fall. The company has completed 280,000 metres of drilling over the past 17 months, and is planning about 140,000 metres more this year.
This year’s work should expand a previous 6.7 million ounce inferred resource estimate and bring it to the ‘measured and indicated’ category – the highest level of confidence for a resource.
Simultaneously, an exploration program of mapping, prospecting and some geophysical work is underway on Hammond Reef and newly optioned Sparton Resources’ grounds.
To accommodate this activity, OHRG completed expansion and upgrades to the camp 23 kms north of town: kitchen improvements, 98 new beds to total 150 spaces, new workout and recreation trailers, and improved internet connection likely operational next month. “That has been a challenge for us, given the location,” noted OHRG project manager Anne Charland. “We’ve tried a few technologies that didn’t work out for us. So now, we’re implementing a tower repeater radio system and attached to that we can put in a data link for an improved internet system, that will hopefully be high-speed.”
The camp was almost at full capacity by mid-June with drillers, prospectors, geologists, and catering and cleaning staff totalling 145 “and climbing”.
Between the camp and the in-town industrial mall office and core logging facility, Osisko has 101 employees on the payroll for the Hammond Reef project. It recently added a site services manager, two camp managers and a senior geologist. “Especially with this summer being very busy, we’re always looking for an environmental technicians coordinator, field foremen, and geologists,” said Charland, adding that “given the current market, they’re hard to find.”
The company has refurbished the105 Main St. E office (formerly Wildwood Country) which it inherited from its predecessor Brett Resources, and plans for it to eventually serve as a “community relations hub” and corporate office. It was the site of the company’s weekend open house.
Project timeline
Osisko updated its timeline on the Hammond Reef project earlier this month. (See the company website, ‘Presentations’ under ‘Investor Relations’.) Work on feasibility studies, which will lead the company to a go or no go decision, will start in the fourth quarter this year, and should be completed in the third quarter of 2012. If the decision is positive, then mine construction would begin in the first quarter of 2013, with a target of fourth quarter 2015 for full production.
Baseline study and environmental assessment work began over a year ago, and will continue through the third quarter this year. Once that is complete, the permitting and approvals process is expected to take another year, to the end of 2012.
Exploration will continue into the first quarter of 2012. Site preparation work should begin in early 2012.
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