International Taurus Resources Inc.: Pilot-Mine Excavation to Start at Fenelon Gold Project
VANCOUVER, British Columbia--(BUSINESS WIRE)--June 27, 2002-- International Taurus (TSX VENTURE:ITS):
The excavation contract for the first phase of the Fenelon High-Grade Gold Project pilot mine and feasibility study has been awarded to Construction Norascon Inc. of Amos, Quebec. All necessary engineering plans have been filed with the relevant Quebec authorities and the Provincial Certificate of Authority to proceed has been approved. Site work is expected to commence before mid July.
The pilot mine is designed as an expansion of the Taurus bulk-sample open pit, which produced 4,339 ounces of gold in 2001.
The Fenelon deposit is a 1993 discovery of Cyprus Canada Inc. and consists of at least nine vertical vein-like zones. Within the area of the pilot-mine project, the known composite strike length of these zones is at least 650 metres. Overall, the strike length exceeds 1,200 metres. Drilling has reached depths of over 200 metres and encountered high-grade gold mineralization averaging more than 30 grams per tonne over widths ranging from one-half to six metres. The bulk sample extracted 14,000 tonnes and, even with the excessive dilution, returned a grade of approximately ten grams per tonne. The deposit is open along strike and at depth.
The excavation work will remove the overburden, exposing the entire bedrock surface expression of the deposit to sampling, mapping, evaluation and mining. Previous bulk-sample work and drilling defined ore-grade mineralization along the southeastern edge of the present open pit. As this and other ore is mined, it will be shipped to a local custom mill to provide cash flow. The remainder of the upper portion of the deposit will be mined to a depth of 35 metres producing as much as 40,000 ounces of gold. Production costs are projected to be less than US$150 per ounce of gold.
An underground mine is necessary to develop the high-grade gold mineralization at depth. Other greenstone gold deposits in the Casa Berardi, which are similar to Fenelon, extend to considerable depths. The nearby Detour Lake mine was worked to a depth of two kilometres and produced 1.7 million ounces of gold.
A feasibility study for an underground mine to exploit the vertical extent of the deposit will be completed during the open-pit mining of the deposit. Underground mining could begin within two years.
The Fenelon Project is a joint venture between Taurus and Fairstar Explorations Inc. of Montreal. Taurus, the project operator, earned a two-thirds interest in the Fenelon Gold Project with completion of the bulk-sample program. Taurus and Fairstar are working together to finance the project through debt instruments and the use of corporate funds. This cooperation is providing an additional $500,000 for Taurus' project account from investors provided by Fairstar. Both companies will be fully funded for the pilot mining operation. In return for facilitating this financing, Fairstar's interest in the project will increase to 38 percent.
Taurus holds properties in Quebec, Ontario and British Columbia containing gold resources of approximately 2.5 million ounces. Taurus also is a partner with Mano River Resources Inc. (London) in the ManoTaur Diamond Project, which is exploring for diamonds in the James Bay area of Quebec and Ontario. ManoTaur presently holds 27 claim groups covering more than 50 potential kimberlite targets. For details, check the Taurus website at www.intl-taurus.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Robert B. Blakestad, President & CEO
This news release is prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual future-period results to differ materially from forecasts.
CONTACT:
International Taurus Resources Inc.
J. Wayne Marsden, 604/681-9558 or 888/827-6611 |
