Nuinsco’s plan for decline ramp shelved

Nuinsco Resources Ltd.’s plans to build a $1.8-million decline ramp that would facilitate the removal of 1,500 tons of gold zone rock from its Richardson Township site has been postponed.
Nuinsco president and COO Garry Hughes said Friday the decision largely was due to a poor gold market.
At the time of a public meeting on the “#17 Zone Bulk Sample Advanced Exploration Project,” held July 15 in Barwick, gold prices were at $254.70/oz. (U.S.)
The price has fluctuated slightly since that time but hasn’t made a marked improvement. As of yesterday, gold sat at $254.50/oz. (U.S.)
“Prices are so low [and] the cycle to come back up again could take quite awhile,” Hughes noted.
But all isn’t lost, he stressed. While a final decision hasn’t been made on going for the gold, another drilling program which Hughes termed a “second phase” was put in motion at the Richardson Township site about a month ago.
It involved a limited drill program using a larger size core of 7.6 cm (three in.) in diameter. The program was initiated to access #34 nickel zone–which lies beneath #17 gold zone–to better ascertain tonnage as well as grade data and metallurgical characteristics.
“The first phase was to go down to the gold,” said Hughes. “Now we are trying to connect to a deeper target–a nickel/copper base.”
Hughes said the primary reason for the larger drill holes, which are a little over 2.54 cm (one in.) bigger than usual, was to make the core go straight.
“The target is only 25-30 feet wide so we had to hit it,” said Hughes.
“Small drill holes wander all over the place. This stuff plods right through without deviation.”
The exploration stage of that drilling program is now finished with an analysis period in swing, Hughes noted. Results on the nickel zone should be available by the end of October.
Hughes also noted no further drill studies would be conducted in Richardson Township until those results were in.
If the nickel zone results warrant further exploration by way of an underground ramp, no work would be done to build it until spring, he said.