Sylvanite Gold Mines, Limited had additionally optioned this property from 1948 to 1950, and had drilled 11 surface holes, totalling 925m along a 75m strike length. The company during this time period had not obtained profitable gold grades in order to commence further work on the property as it was abandoned once again. Further work on this site would be done in 1950, when the McDermott Gold Mines, Limited, became incorporated to McDermott Mines, Limited.
Upon re-evaluating the Holt Dermott Gold Mine, American Barrick Resource Corporation, had mad a conclusion that the gold mineralization is hosted by altered intermediate dikes near and within a splay of the PDFZ rather than by interflow sedimentary material. According to this model, the much carbonated-chlorite schist which envelops the main Mineralized Zone as the Upper and Lower Transitional Alteration Zone is considered to be interpreted as sheared and variably carbonatized diorite dike material that is believed to have been intruded into a splay of the PDFZ, and Subsequently plastically stained along with some basaltic host rock. This at the time was also followed by a second quartz dioritic intrusive event with the splay deformation zone. Subsequent tectonism is also believed to have resulted in multiple events characterized by brittle straining of quartz dioritic dike material, with each even accompanied by pervasive and penetrative silicification, hematization, sulfidation (as Pyrite), albitization, gold deposition, and by quartz stringer formation. This would have resulted in the final significant hydrothermal regime to which the deformation zone was subjected is manifested now by pervasive and widespread carbonatization (Dolomitization proximal to and calcite alteration distal to the main mineralized zone, and was accompanied by limited gold remobilization.
By 1988, the American Barrick Resource Corporation had additionally brought its Holt McDermott Gold Property to production stage and the mine was then opened. The opening of the Holt McDermott Mine was officially taking place on August, 9, 1988, and was situated in Northwestern Holloway Township. Before this was official it was also reported that the total capital cost to bring the mine and the 1,500 ton milling complex, had cost nearly $78 million. From a production the standard the American Barrick Resource Corporation had estimated that the total cost to produce 1 ounce of gold was $225. Development on the Holt McDermott Gold Mine had also officially commence on July, 1, 1988, and the annual production for the this mine was anticipated to be at about 80,000 ounces of gold annually by 1989. Further explorations were aimed at calculating the proven and profitable ore reserves within the mining operation that had amount to 4,000,000 tonnes, averaging 0.152 ounces of gold per ton. Production during 1988, was anticipated towards producing a total of 30,000 ounces of gold by the year end. By early August, 1988, the mine consisted of 3-compartment, 450 m deep vertical shaft. Stations would also be cut on the mines 100, 150, 200, 250, 300, and 350 m levels, opened up by drifting. Lateral development work during 1988, and up to November, 1988, had amounted to a total of 5,080 m of drifting, 1,179 m of raising, and 714 m of sub-drifting between levels. This also included 63,262 m of underground diamond drilling and 1,760 m of surface drilling that was completed. The first ore load that was hoisted from the mine had commence on September, 1988, and would amount to 105,696 tonnes of ore grading 3.5 G/T Gold Within that time period the first gold pour was mainly done within at the on-site milling complex which ended up recovering 11,859 ounces of gold. A minor amount of silver and copper had also been recovered from this operation that was associated with the gold ore that came from the Holt-McDermott Gold Project.
Production that was taken up for the first six months had rather produce a total gold recovery of 31,251 ounces of gold in 1989. Milling within this time period would also end up processing nearly 1,510 tonnes of ore on a daily basis, and achieved an average recovery of 94.7%. It was also at this time when the anticipated cost per an ounce of gold had been $283US. With expansions taking place the new mine had brought several more stopes into production within the second half of 1989. Lateral development was also focus on drifting that was extended towards the Worwest Property on the mines 150- and 200m levels of the Holt Dermott Gold Mine. Development had also been confined further expanding the 250m level that was extended towards another zone known as the Matawasaga Zone, which was acquired from Canamax Resource Inc. Drifting at this time was mainly confined to the foot wall of this zone, which resulted in making plans to complete extensive amount of drifting. With development of additional stopes continuing, this had allow the company to expand its production to a milling rate of 44,000 to 45,000 tonnes per a month. Further statements on the production had resulted in achieving an anticipated recovery of nearly 75,000 ounces of gold that would be produce to the end of 1989.
Surface diamond drilling that was undertaken at a distance of 2.5 miles had also intersected a shallow gold deposit south-west of the Holt Dermott Gold Mine. Probable along with proven ore reserves would additionally amount to 420,000 tonnes of ore with an average grade of 0.19 ounces Au, in two adjacent zones down to the 440-foot vertical depth. For the most part, this zone had also remained opened at depth.
By 1990, the conditions in ore reserves and grading had steadily improved at the Holt McDermott Gold Project in Holloway Township. In addition to this, it was also reported that some zone had lacked continuity and the grade of ore from a few stopes was lower then anticipated. This resulted in increasing development work in order to open up new ground for stoping operations, and cable bolting had controlled ore delusions. Both of these factors were rather commonly considered to have contributed towards the performance of the Holt McDermott Gold Mine. Some new stopes were developed that became situated on sections of ore zones covering McDermott, Worwest, and the Three Star Properties. It was also within that time period when drifting on the 250-foot level had rather reached what became known as the Matawasaga Zone. As the mine progress Definition Drilling was taking place with the possibility of mining this are by stopes in early 1990. Within the first six months, the on-site milling complex had treated 234,414 tonnes of ore to produce 32,523 ounces of gold with an average mill recovery of 93% and a production cost of $296 US for one ounce of gold. Further expansions would also continue when the main shaft was being deepened in order to intersect with the 550m horizon at the Holt McDermott Gold Property. Much of the capital in completing this project by 1991, would end up costing approximately $2 million. Ore reserves which were calculated in 1989, resulted in 4,600,000 tonnes of ore with an average grade of 0.136 ounces of gold. A total of 2.6 million tonnes of ore was also considered to have been proven and probable ore reserve estimations.
Diamond drilling that was done in 1990, resulted in confining explorations to about 3,000 feet east of the main shaft operation on the Matawasaga Zone, which had indicated 200,000 tonnes of open pittable ore reserves with an average grade of 0.10 ounces Au per ton. The zone which was being further evaluated had also been opened along strike which was currently being explored at the time.
A total of three good intersections had also been reported during underground drilling, including 85 feet averaging 0.23 ounces Au, at depth. This diamond drilling program would additionally be done 800 feet east of the open pittable ore that was intersected in 1990. Development along with exploration drilling had proved this zone to have its own strike length of nearly 1,150 feet, between 1,150 and 1,500 feet below the surface, and was located in two major fault zones. These two fault zones are currently referred as the McKenna and Ghostmount Faults within the Holt-McDermott Gold Mine Property. Diamond drilling consisting of twelve holes was also completed on this fault, and additional diamond drilling was to commence between October and Christmas of 1990.
Within 1991, it was reported that the average grade of ore was slightly down at the beginning of 1990, but the mine had still produce 60,728 ounces of gold from 655,219 tonnes of ore treated. This at the time was far more ounces then anticipated by the company's goal of 60,000 ounces, and the price per an ounce was set at $319 US. Expansions at the Holt Dermott Mine had also continued as the 1990, shaft deepening program resulted in reaching a depth of 620 m below the surface. Most of the work that was taken place had mainly been done in relation to new ore reserves being uncovered on the Matawasaga Zone. Lateral development was focus on expanding the 350m level to access this zone in order to commence stoping. operations. Total development within this time period resulted in the completion of 158 m of shaft sinking, 5,349 m of drifting and sub-drifting, and 1,617 m of raising. Development would also take place on the 435 m level in 1991, by completing 539 m of development to the west and by starting drifting to the east of the Matawasaga Zone. The zone at the time had proven and probable ore reserves of 2 million tonnes averaging a grade of 0.18 ounces Au per ton, Other plans were made towards the on-site milling complex when it had started treating development muck from the Matawasaga Zone during the third quarter of 1991, and the zone was expected to come into production by1992.
Production from the Holt-Dermott Mine had resulted in a total recovery grade of 46,325 ounces of gold from 453,348 tonnes of ore, grading 0.102 ounces gold per ton. It was also in 1992, when a diamond drill hole became completed to explore the down-dip potential of the Matawasaga zone. Results from this diamond drill hole had intersection an active mineralization zone that was located 2,500 feet south of the shaft at a depth of 2,900 feet below the surface. This had resulted in follow up drilling that was being planned in order to determine the full extent and significant of this new mineralized zone. Lay offs were also given to 15 employees in September, 1992, in conjunction to reducing employment at the mine from 175 to 160 workers. In addition to this, the lay off was mainly caused due to a reduction of development work taking place on the levels.
The Holt-Dermott Mine was rather being further expanded as the No. 1 Shaft was being deepened from 300 m to 920 m. With this taking place it was by years end when the shaft had reach a depth of 747m below the surface. As development proceeded a new ore zone containing 750,000 tonnes of 0.20 oz. Au per ton had been outlined south of the and below the present mine workings. Lateral development at the time was also establish on 3 levels, as ore and waste passes, loading pockets, crusher stations, etc., would end up costing $8.7 million. The newly discovered ore zone , below and south of the present mine working, has a strike length of 260 m and Is situated between the 650- and 800 m levels. Production from the zone was being prepared to commence by the beginning of 1995, and was expected to extend the mine life by two to three years. During 1992, the ore grade and production had rather substantially increased at the mine. From all development of stopes, a total of 64,219 ounces of gold were produced from 427,700 tonnes of ore for an average recovery of 0.150 ounces of Au per ton.
Within the operating year of 1994, American Barrick Resources Corp had additionally completed the deepening of the Holt-Dermott Mine Shaft to a depth of 941 m in September, 1992. Lateral development drifting was also confined to the 650 and 700-m levels in order to access the South Zone, which was discovered in 1993. Exploratory drilling had also been carried out from 550-m level, and a bore raise was completed from the 550 m level to the surface, and will be used for back fill of the South Zone. With development taking place the company had also predicted that the ore passes, waste passes, and new crusher stations would be operational by April, 1995. Production that was achieved in 1994, had resulted in recovering 59,800 ounces of gold that was produce from 405,00 tons for an average recovery of 0.155 ounces of gold per ton. Ore reserves within the mine workings to the end of 1994, resulted in a calculation of 3,915,000 tonnes of ore grading 0.224 ounces of gold per ton, representing 876,960 ounces of gold.
The total production figure for 1995, was 421,601 tonnes of ore that was milled, and had yielded 66,389 ounces at a grade of 0.137 ounces of gold per ton. With this had also came production costs that were $254 US for an ounce of gold that was produce from this mine. An increase to the ore reserves were also made by the end of 1995, which resulted in a calculation of 4.5 million tonnes grading 0.23 ounces of gold per ton, and representing 1,035,000 ounces of gold. Development which was followed had also access the South Zone on the 650 and 700-m levels, at a capital cost of $5 million in 1995. The zone was originally discovered in 1993, is open at depth and on strike, which has a drill indicated reserve of 3.9 million tonnes of ore grading 0.24 ounces of gold per ton. This section of the mine was also considered to have been quite higher then the gold zone on the property, and the company had already anticipated the production of 120,000 ounces of gold in 1996 at an average cost of $150 US. With the use of three underground diamond drill, the company completed 27,000 m of underground exploration drilling
Underground lateral development within 1996, had rather amounted to 17,917 feet of drifting and 2,874 feet of raising. From this development, diamond drilling had also taken place which resulted in completing 211 underground drill holes, totalling 103,317 feet About 40% of this drilling was mainly dedicated to exploration and 60% to ore definition drilling. In addition to this, the company would also drill four surface exploration holes, totalling 12,779 feet in total length. The total ore reserves which were calculated in January, 1997, had resulted in 5,3 million tonnes grading 0.191 ounces of gold per ton or containing 1,009,000 ounces of gold. This had also included 3.5 million tons of the South Zone grading 0.206 ounces of gold per ton. for 720,000 ounces of gold. Production that was done within the on-site milling complex had treated 483,661 tonnes of ore, which yield 117,621 ounces of gold at an average grade of 0.243 ounces of gold per ton.
Milling and mining operations had continued to operate through 1997, which resulted in a production of 461,478 tonnes of ore, yielding 116,474 ounces of gold at a recovery mill grade of 0.207 ounces of gold per ton. Lateral development that was completed within the underground workings amounted to 16,489 feet of drifting and 1,284 feet of raising. Drilling that was completed from underground at this time had amounted to 95,590 feet in 194 holes completed. From this drilling program, 43% was dedicated to exploration work and 57% was ore definition drilling. It was also in 1996, when American Barrie Resources had made retirement packages in order to down-size its workforce as development was being cut back by 25%. With this had also came a mechanical break towards the company's grinding circuit that caused temporary set backs in production for the time being.
To be continued -