Developing an open pit gold mine in the Beauce
In April 2014, HPQ Silicon singed a definitive option agreement with Golden Hope Mines (“GNH”) concerning the advancement of the Bellechasse-Timmins (BT) Gold Deposit into a producing mine.
In August 2012, GNH published a resource estimate of an indicated resource of 313,900 ounces gold (2.9 million tonnes grading 3.36 g/t Au) and an inferred resource of 102,000 ounces gold (2.17 million tonnes grading 1.46 g/t Au) using a cut-off grade of 0.60 g/t. Furthermore, GNH’s many bulk-sampling campaigns revealed extensive areas of surface mineralization averaging approximately 3 g/t Au. Notable were sampled areas averaging up to 10 g/t Au (Trench 09A).
The Beauce Placer property and the Golden Hope Mines’ Bellechasse-Timmins (BT) Gold Deposit (which are both ‘nuggety’ type deposits) are located within Magog Group sediments. It should be noted that the Beauce gold project has a thick till in contrast to the Bellechasse-Timmins (BT) Gold Deposit where most of the till has been eroded away and exposed the outcrops. This suggests that both the Beauce and the Bellechasse/ Timmins deposits are genetically related – the Beauce being a placer deposit derived from an unknown Bellechasse/ Timmins type deposit.
With its Beauce Placer project, HPQ Silicon intends to develop a (600 MT/day) surface gold mining operation on the B-T property. Developing in parallel the B-T property and the Beauce Placer property will benefit both companies by providing greater geological and operational synergies such as cost savings.
Under the terms of the Option Agreement, HPQ Silicon will be responsible for obtaining all required permits, approvals, and documentation associated with going into production, in return for a 30% interest in the property. HPQ Silicon will then have 120 days to obtain project financing, which, if successful, will earn it a further 20% interest, giving HPQ Silicon a 50% interest in the B-T deposit. The companies will then form a Joint Venture (JV) for the operation of the mine, with HPQ Silicon serving as operator. GNH will have a carried interest into production, and will receive a 50% Net Proceeds Royalty (“NPR”) on the gold produced.
• 38,000 meters drilled, 2010 to 2012
• Gold Recovery:
– Gravity separation up to 92%
– Total gold (gravity + cyanidation) 99%
• Less than 1% Bellechase-Belt explored
• Located in the municipality of Saint-Magloire, in the Beauce region of Quebec
• 1 ½ hour drive south of Quebec City
• 3 ½ hours from Montreal
• Accessible year round on all paved roads, close to urban infrastructures
|313,900 oz||102,000 oz|
|2.9MM tonnes @ 3.36g/t||2.2MM tonnes at 1.46g/t|
Surface mineralization averaging 3g/t
Up to 10 g/t gold (Trench 09A)
|Hole||Zone||Length M||G/t Au|
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Please note that many if not most of the references to minerals reserves, resources, tonnages or grades referred in our press releases, geological summary reports or maps on this website are historical in nature. Furthermore some of these data were generated by the various sources prior to the implementation of NI 43-101 regulations. Readers are cautioned not to rely upon these information unless HPQ Silicon specifically indicates that they are NI 43-101 compliant.