Editor's note: The story in the print edition of The Gulf News incorrectly identifies the company doing the exploration as Corridor Resources. It is, in fact, Castillian Resources.
Bill Pearson, the company’s president and CEO said the workers are currently mobilizing and setting up camp. He expects drilling to start in early September.
“Part of what we’re doing is a complete reassessment of the belt,” said Mr Pearson.
“There’s a past production of 752,000 ounces. They certainly didn’t mine out what they could have.”
The project is expected to run until December and will cost about $2 million. That financing is already in the bank, according to Mr. Pearson.
At least some of that money will find its way to the southwest coast. Mr. Pearson said the company has tapped former mine workers from the coast, and a Port aux Basques company is handling logistics. Most expediting for the project will be done from Port aux Basques.
Mr. Pearson said Don Allen of C and C enterprises has been hired to get supplies for the exploratory project.
“He’s been doing a good job for us. He ran logistics into the former mine and he knows the area pretty well,” he said.
Mr. Pearson added that having so much local labour and experience in the area is a real bonus for the company. He is used to working in remote parts of South America where skilled labour must be brought it.
Castillian Resources is planning to drill a minimum of 5000 metres of test holes to look for potential gold reserves that remain. Geophysical work is also being done through induced polarization surveys.
Depending on what they find, the company is prepared to start a second phase of exploration that could include an addition 12,000 metres of drilling and additional geophysical surveys.
Mr. Pearson cautioned that reopening the mine is not a sure thing yet, and much work must be done first before that could happen. Nevertheless, he understands the desire for many on the coast to see Hope Brook brought back to life.
“When we put out the initial press release, my phone was ringing off the hook with people asking when was the mine going to reopen,” said Mr. Pearson.
He said the infrastructure that remains at the mine is still in good shape. That infrastructure includes roads, an airstrip and a dock.
“We have no problem landing things there. The airstrip is gorgeous,” he said.
Hope Brook Gold Mine produced around 752,000 ounces of gold during its ten years in operation from 1987 to 1997. It was a major economic engine on the southwest coast, providing about 400 jobs at its peak production. Low gold prices and waning production eventually forced the closure of the mine.
Gold was selling for about $300 an ounce in 1997. It is now selling for about $1,300 an ounce.
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