TORONTO (miningweekly.com) – Halifax-based explorer and development firm Zephyr Minerals has contracted consulting engineering firm MineTech International to complete a mine plan for the company’s flagship Dawson gold project, in Colorado.

The Dawson deposit comprised three mineralised areas, including the main Dawson segment, the Windy Gulch segment and the Windy Point segment.

The TSX-V-listed firm said, at a preliminary economic assessment level, the work would consist of an openpit mine plan and production schedule at the Windy Gulch segment and an underground mine plan and production schedule at the main Dawson segment. The decline design, capital requirements and operating costs would be carried out to a preliminary feasibility level (about 15% to 20%) of accuracy.

"We are very pleased to have started this next step in advancing the Dawson gold project. Despite unfavourable market conditions for junior mining companies, Zephyr has been effective to date in methodically carrying out its strategy, with the ultimate goal of production,” Zephyr executive VP David Felderhof noted.

Since acquiring Dawson, the company had completed a successful drill programme, completed an independent Canadian National Instrument 43-101-compliant resource estimate, started baseline environmental studies and finalised necessary metallurgical testwork.

Zephyr had been able to do this through a combination of successful private placements and its prudent use of the proceeds.

Together, the main Dawson segment and the Windy Gulch segment hosted an inferred mineral resource of 392 000 t, grading 10.50 g/t gold; containing 132 300 oz of gold using a 5 g/t gold cutoff and a cap of 40 g/t gold. The uncapped resource stood at 392 000 t, grading 11.97 g/t gold, containing 150 800 oz of gold.

Zephyr said on Tuesday that the main Dawson segment was open down-plunge to the south-west and up-plunge to the north-east, and the Windy Gulch segment was open to the east and at depth. The company attributed ‘blue-sky’ potential to the project’s future.

The Windy Point segment, which was not included in the resource estimate, was open along strike and at depth.

The mine plan would be used to move the ongoing permitting activities forward.