Work expenditure report for the period to 6 November 1988, MCC 203

Abstract

Following unsatisfactory results from treatment of two batches of high grade ore transported to Pacific Goldmines NL treatment plant at Moline, it was apparent that there were considerable variations in the metallurgical and physical characteristics of each tailings resource. To overcome this problem more detailed testing and feasibility studies were undertaken. In the light of falling gold prices and increasing reagent costs, the economics of certain tailings areas became questionable. Pacific Goldmines commenced preparations for small scale mining in October with a view to expanding the operation as economic parameters for each tailings area were established. This was outlined in a letter to the Department on 19 October 1988. Work commenced on the tailings on the adjacent MLC 498 and MLC 582 containing coarser tails and Holding Claim 23 and MCC 203 both representing finer grained tailings. Material was stockpiled and preparations made for acquisition of equipment and construction of a heap leach operation. At this stage, Pacific received notice that the agreement by which it was permitted to operate on MCC 203 and other titles was to be terminated. Pacific was forced to suspend operations on 31st October pending resolution of this matter. Pacific Goldmines NL intend resuming work on MCC 203 and others as soon as the matter outlined in the above has been resolved .