Trelawney Mining and Exploration (OTC:TWNNF) is a company going places – fast. Having released some wide zones of mineralization at the company`s Cote Lake deposit just last week, the junior gold explorer reported positive preliminary metallurgical test-work this evening.
The Cote Lake deposit is part of the Chester project, located halfway between Timmins and Sudbury in Chester Township. A maiden resource is due out on the project this year, but investors have been piling for months now, pushing shares in the company from under $1.00 per share to nearly $4.00 in less than 12 months.
Highlights from the drilling reported last week included 192.40 metres of 1.09 g/t gold in hole E10-44; 141.50 meters of 1.89 g/t gold in hole E10-45; 388.00 meters of 0.90 g/t gold in hole E10-46; and 243.10 meters of 1.31 g/t gold in hole E10-47.
Unlike many projects in northern Ontario, Cote Lake is a low grade, large tonnage play rather than the more commonly found high grade underground mining discoveries.
Metallurgy is always a key factor in any project, and this evening the company reported results from two 40 kilogram composite samples sent to SGS Canada`s lab in Lakefield, Ontario. The first sample was taken from hydrothermal breccia with copper enhanced mineralization. The second contained only gold from intrusive breccias.
The copper enhanced sample recorded recoveries of 85.6 to 94.9% using gravity and cyanidatation and various feed sizes. The same sample material returned 21.6% of the gold by just gravity, while a flotation test returned 98.7% recovery for copper.
Perhaps most encouraging, the gold only sample generated recoveries between 94.3 and 97.8% using gravity and cyanidation combined, with 51.3% of the gold recovered by a gravity circuits. High recoveries are particularly encouraging for low grade ore bodies, and though preliminary, recovering over half of the gold with just gravity bodes particularly well for developing a low cost mine.
"We are very satisfied with the results of this preliminary metallurgical work which indicate that excellent gold recoveries can be achieved by conventional processing methods. Recoveries of this magnitude in bulk tonnage gold deposits are very favorable for future project development,” Greg Gibson, Trelawney's President and CEO commented.