Macassa part of Lac Minerals' $15-million exploration program.

• Author: Wroe, John
• Position: Gold Mining Report

Macassa part of Lac Minerals' $15-million exploration program

After five years of investment, Lac Minerals expects gold production at the Macassa Mine in Kirkland Lake will reach design capacity this year.

The Macassa investment is part of a broad strategy by Lac which calls for production of more than a million ounces of gold annually.

"We have achieved a critical size and diversity," company president Peter Allen said in his report to shareholders. "The outlook for ore reserve expansion is very good."

Allen said that exploration programs this year will cost $15 million, with Macassa being one of the priorities. The new 05 Zone at the mine "looks encouraging" he said.

The company, seeking to consolidate its position as a major Canadian gold producer, has investment heavily in the operation. Most media attention has focussed on LAC's losing battle with International Corona over ownership of the Page-Williams Mine in the Hemlo area, but the company has other growing interests.

Last year Lac acquired a 65-per-cent interest in Bond International Gold Inc. (BIG), giving it part-ownership of five additional mines - El Indio in Chile, Bullfrog in Nevada, Colossaum in California, Golden Patricia in northwestern Ontario and Richmond Hill in South Dakota.

Including Donyon just east of Rouyn-Noranda, Bousquet Nos. One and Two near Malartic, Macassa and Lake Shore in Kirkland Lake, Toqui in Chile and Francoeur west of Rouyn-Noranda, Bond's group of mines is expected to produce 1.1 million ounces of gold this year. LAC's share will be 770,800 ounces.

Macassa, in continuous production since 1933, is expected to contribute 85,000 ounces of gold in 1990, while the adjacent Lake Shore tailings project will add another 13,000 ounces.

The new No. 3 Shaft was completed in 1986 and the 1,250-ton-per-day mill in 1988. The mill is designed to process 500 tons of ore per day from the Macassa Mine and 750 tons of tailings per day from Lake Shore.

Mine manager Bill Glover said production averaged 453 tons per day, producing 82,540 ounces of gold in 1989. This was a record for production at the mine.

Glover sees little difficulty in meeting the 500-ton production target set for 1990. The mine has 320 full-time employees in the office, the mill and underground.

Lac undertook an "ambitious exploration program" over the past year, said Glover. The company expanded reserves by 39 per cent through 62,700 feet of underground diamond drilling. Current proven and probable...