Monday, 9 June 2008

Golden Visit to Kenville Mine

It has been a long time since the Kenville gold mine has been in production, but with all of the activity taking place on the property you would never know it. The entire property is buzzing as a full time team of 16 are working to bring Kenville into the new millennia.

I had a chance to tour this spectacular piece of history and it’s an eye opener as to how modern and up to date this old mine site now is based on the recent work undertaken by Anglo Swiss. Normally road access to a gold mine means that you better have a low gear setting on your four wheel drive but there I was pulling up to the office on the Kenville site in my car just a few minutes off of the highway. Access was that easy and I was pleasantly surprised by how much property Anglo Swiss actually has in this beautiful valley overlooking the lake.

We have talked about the importance of infrastructure many times in past commentaries . Anglo Swiss has everything that it needs from access, power, water and functioning assay labs and offices to take this mine back into production. There will be new track laid to the refurbished tunnel this year. It is hard to believe when you see the entrance to the main tunnel that this goes into the mountain for five kilometers.

It is interesting to see the tonnes of rock that had been pulled from the miles of tunneling throughout the property. The company has plans to crush the rock and sell it to the local aggregate market. The rock will be processed right on the Kenville property through its newly refurbished jaw crusher. This operation had recently gotten underway at the time of my site visit.

There is not only value in the crushed rock but also the gold, copper and other minerals that will be extracted as the fines are recovered in the crushing process. It is worth noting that you can pick up almost any piece of rock and see mineralization running throughout it. While one would expect that to be the case since all the rock came from a past producing gold mine but the extent of the visual mineralization is still somewhat surprising. Management is expecting that the recovery of minerals from the crushed rock will provide seven-figure revenue to the company over the next two years and help fund future exploration and development programs.

I witnessed the drill bit turning as the company is well into its 10,000 meter, phase 2 drilling program. It was exciting to get an up close look at hundreds of meters of the core samples from the drilling process. You can visually see mineralization in portions of the core. Anglo Swiss is looking to prove two different discoveries with the drill bit. It expects to fully define the Eagle gold Vein size as well as prove a large tonnage, copper/gold porphyry area this year.

It’s no secret the stock market has not been kind to junior resource companies over the past six months in particular. Irrelevant of that, Anglo Swiss is running full out to produce results, which will make it stand out from the pack.

Of course, the prize is confirmation of a large copper/gold deposit near the surface and/or hitting rich hard rock gold veins in the Eagle system.