Automated Cyanide Control at the New Britannia Mine, Snow Lake, Manitoba: Fall 1998

"Site IdentificationNew Britannia MineA 50/50 WX Gold Inc. - High River Gold Mines Ltd. Joint VentureTVX Gold Inc. is the OperatorLocationThe New Britannia Mine is located in the town of Snow Lake, Manitoba, which is situated between Flin Flon and Thompson, 420 miles north of Winnipeg.Brief Description of OperationNew Britannia Mine processes 2000 tonnes per day at an average grade of 4.5 g/t. Mill recoveries are currently 91 YO, accounting for forecast of 98,000 ounces for 1998.New Britannia Mine's mill complex incorporates conventional crushing, grinding and carbon-in-pulp technology. The design capacity of the New Britannia Mine mill is 1850 tonnes per day. The mill has processed upwards of 2300 tonnes per day, with no required upgrades.Gold recovery averaged 89.8% for 1997 compared to the planned 87% recovery expected from projected metallurgical test work. Year to date recovery mid December 1998 stands at 91.1 %Cash costs for the 1998 year to date were down to U.S. $221.49 per ounce, down 12% from the 3rd quarter of 1997. Milling costs for 1998 YTD were at Cdn. $9.38 per tonne and Cdn. $73.50 per ounce.Geology - (Orebody Description)The Snow Lake gold deposit is located within the Aphebian Flin Flon / Snow Lake Greenstone belt. This belt is composed of an assemblage of poly-deformed volcanosedimentary supercrustal sequences intruded by pre and sin tectonic ultra mafic and mafic intrusions and sin to post tectonic granitoid.The principal gold bearing rock at the New Britannia Mine is made up of quartzcarbonate material in sequence of basic and acidic volcanic rocks contained within a shear zone. The ore itself is gold associated with the sulphide mineral arsenopyrite and contains some pyrite, pyrotite, plus chalcopyrite. Proven and probable reserves at December 31, 1997 were at 4.04 million tonnes at 4.6 g/t and underground exploration continues to confirm the extension of the ore zones to depth."