North Bay Resources (OTC:NBRI) is continuing development work into the Canadian fall at the Fran Gold Project in British Columbia after completing initial test mining at the site.
Permitting has begun of a 10,000 tonne extraction permit that will allow the company to use large-scale equipment and extract at a rate of between 50 to 100 tons per day.
Based on the results of extracting and processing the 10,000 tonnes, North Bay will determine whether to apply for a small mine permit of 50,000 tonnes per year or a larger mine permit.
The company says this decision will depend on the near-term development of the surface oxide zones and long-term availability of high-grade ore and mine plan, as well as costs and benefits of the development options.
North Bay anticipates it will likely develop the low-grade bulk tonnage deposit in conjunction with the ongoing mining of high-grade oxide zones.
The development of the core low-grade bulk tonnage gold deposit of 20 million tonnes would include an onsite mill and initial extraction of 1 million tonnes per year at an estimated grade of 0.5 grams per tonne with potential expansion up to 2 million tonnes per year and 40 million tonnes resource. The total resource potential, beyond 40 million tonnes, is unknown and likely to expand.
Initial test mining conducted at the location of a massive sulphide surface outcrop with recent assay of 0.5 ounces per tonne gold. The massive sulphide surface zone is between trenches of known high-grade gold mineralisation and is now the focus of development.
North Bay notes the ore is heavily mineralised containing gold, copper, and silver mineralisation primarily in the form of chalcopyrite, marcasite, and spherulite.
Additional loading of ore will resume in 10 days with an expanded crew followed by shipment by tractor trailers to the Bishop Gold Mill for processing.
The Fran Gold Project, covering 34,360 acres, is located 20 miles from the 60,000 tonnes per day Mt Milligan Copper-Gold Mine in Canada.
North Bay Resources is a gold-focused company that owns and operates the 96 tonnes per day Bishop Gold Mill in California and the Fran, Murex, Copper Island and Tulameen projects.
Write to Aaliyah Rogan at Mining.com.au
Images: North Bay Resources
