Copper producer Arimetco International (TSE) has reached an agreement with federal, state and local authorities for the dewatering of the Yerington pit in Nevada.
The federal government has agreed to subsidize the dewatering to the tune of US$750,000, as part of the Walker Lake recharge project. Arimetco plans to match that amount, which will enable it to carry out pumping over two years.
All permits have been received for the discharge of the pit water into the Walker River.
The dewatering will result in the exposure of sulphide ore left behind by Anaconda, the mine’s previous owner. Arimetco plans to process this ore by building a concentrator and roaster.
Arimetco is currently reprocessing 18.5 million tons of low-grade oxide ore (grading 0.2% copper) from the W3 dump, using a combination of heap leaching and solvent extraction-electrowinning. Pumping should be finished by the time the W3 dump has been exhausted, at which point the company can begin mining the 50 million tons of sulphide ore (grading 0.49% copper) contained in the pit.
The operation currently yields about 45,000 lb. copper per day, and mining of the sulphide ore is expected to raise this level to 60,000 lb.
Some five miles to the north is the MacArthur property, which the company hopes to integrate with its Yerington operation. On a daily basis, 51 million tons of oxide ore from MacArthur are trucked to the leach facilities at Yerington. The average grade is 0.26% copper.
Meanwhile, construction on the Zonia copper project in Arizona is expected to commence in the second quarter. Minable reserves are estimated at 36 million tons grading 0.36% copper, and the project will require an investment of US$17.5 million.
Arimetco earned US$1.5 million (or 5 cents per share) in the first quarter, compared with US$288,000 (or 1 cents per share) for the same period a year ago. It sold 4.9 million lb. copper during the quarter, compared with 4.4 million lb. in the same period in 1994.
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