Cameron Gold Project moving forward
As the race for gold continues across the region, Coventry Resources is moving onto a preliminary economic assessment of its Cameron Gold Project site near Sioux Narrows.
“We’ve essentially completed an extensive drilling program,” explained Nick Walker, country manager with Coventry Resources, with the next phase being the PEA, which will be done by Roche Consulting of Quebec.
“Or if it’s not, why is it not and what we need to do to make it economical.”
This PEA will be completed by March of next year, Walker said.
“We think—just by what we know—that things look positive,” he remarked. “But the study obviously will tell us that.”
From there, Walker said the project will go into a feasibility study, which will be “essentially the same thing but in more detail.”
This next study is set to be completed in 2013—and the decision to “go ahead” with a gold mine will be based on it.
Coinciding with these studies and the extensive drilling program has been permitting and completing all the environmental baseline studies, Walker noted.
The project is located north of Cameron Lake, which is situated east of Highway 71 between Nestor Falls and Sioux Narrows.
Walker said two things are working in the Cameron site’s favour.
“The Cameron [deposit] has been known for quite a while and has a long history,” he explained, noting that it always had been looked at as an underground operation up until now.
“But the mineralization, or the ore itself, actually extends to the surface, and that’s what immediately attracted [Coventry] to the surface because we can mine it in a very different way,” he remarked, with the company looking to have an open pit mine.
As well, when the site was last looked at, gold prices were “very depressed.”
“Whereas at the moment, it’s strong and it will stay strong for quite a while, even with what’s happening in the world economy,” Walker reasoned.
“In terms of the deposit, the mineralization is there, the resource is strong,” he added. “It’s very
minimal to mining, it’s easily mined.
“There’s no contaminants in the ore, it’s very clean ore, as well,” he noted. “There’s lots of positives for it.
“But you never know until you get to the end of the study, and the outcome is there in black-and-white.”
Walker said the company also recently acquired a large landholding in the Rainy River area, next to Rainy River Resources.
“We see that as another opportunity. We like the area a lot,” he enthused. “We think it’s very under-explored; it’s a very poor cousin compared to other greenstone belts in Canada.
“There’s lots of potential here.”
The company held a public information session in Sioux Narrows last Thursday so people could learn about the progress and plans for the site, as well as ask questions about the project.
While only in its exploration phase, the project employs anywhere from 12-20 people on-site, said Walker, adding they try to employ as many locals as possible.
“The only people who we can’t get locally are usually technical people like geologists and things like that,” he noted.
“All of our non-technical people are local people either from Nestor Falls, Kenora, and some of the local [First Nations], as well.”