Inco to develop new mine in Sudbury at cost of $179 million

Based on operating and production estimates, the three deposits of the McCreedy East mine host reserves in excess of 50 million tons grading about 1.7% nickel and 0.8% copper. The McCreedy East mine will be capable of lifting 7,000 tons of ore per day to yield 41 million lb of nickel and 21 million lb of copper annually during its 20- year operating life. The potential for additional reserves is considered good by Inco.

The McCreedy East, where the latest continuous mining methods, electric underground equipment and the ore-handling facilities of the nearby Coleman mine are going to be utilized, will be Inco’s most productive mine in the Sudbury Basin.

“McCreedy East, because of its size, grade and latest mining technology, will produce at a productivity level double the average of the other Inco mines,” Bill Clement, president of Inco’s Ontario division said. Trucks with capacities of up to 70 tons are being considered, an Inco engineer said.

Inco estimates productivity will be about 30 tons per manshift — double the current average rate of 15 tons per manshift in the division. Such productivity will likely enable the McCreedy East mine to produce a pound of nickel for less than $2(US), The Northern Miner estimates. Current nickel prices are above $4(US) per lb.

The reserves at McCreedy East, which have been known to exist by Inco for at least 10 years, will be extracted via the Coleman mine’s underground workings, one mile away. A new hoist-and-skip system will be installed at the Coleman mine to handle McCreedy’s 7,000- ton-per-day rate and Coleman’s 3,000-ton-per-day capacity, an Inco spokesman told The Northern Miner.

Two ventilation shafts will be completed on the McCreedy property which will also provide access for development of the ore bodies.

Inco will produce about 434 million lb of nickel this year, unchanged from 1988. McCreedy East’s output will represent about 9% of the company’s forecasted annual production in 1996 when the mine achieves full production.

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