For much of last year, the Aur Resources, (TSE) Societe Miniere Louvem (TSE) copper-zinc-rich massive sulphide discovery east of Val d’Or, Que., was the most talked about base metal play in Canada. While smaller than Geddes Resources’ (TSE) Windy Craggy project in British Columbia, it had everything that investors seem to look for in an exploration project — namely grassroots status, seemingly unlimited size potential, a lawsuit and the involvement of two dramatically different junior exploration companies.
Initial euphoria, however, has been quelled by some poor results and uncertainty caused by the legal proceedings. Investors may be casting about for some other promising base metal projects. And there are lots of them.
They include the Hanson Lake copper-zinc project in northeastern Saskatchewan which Trimin Resources (TSE) and Cameco hope to bring on stream by 1992. Situated 40 miles west of Flin Flon, Hanson Lake is held 67.1% by Cameco while Trimin has the remaining 32.9%.
The region is underlain by volcanic and sedimentary rocks that are isoclinally folded and plunge either north or south. According to preliminary estimates, reserves in Hanson Lake’s number two lens stand at 10.8 million tons grading 0.95% copper, 5.76% zinc, 0.42% lead, 0.015 oz. gold per ton and 0.73 oz. silver.
Two other lenses contain 900,000 tons of grade 2.2% copper and 0.84% zinc and 40,000 tons of 8.1% zinc and 1.6% copper respectively.
However results from two holes drilled in the Main number two lens suggests the reserves may increase by as much as 30-45%. Hole HAO-57 intersected 106 ft. of mineralization, including a 20-ft. intersection averaging 3.89% copper at a depth of 1,970 ft. below surface.
A prefeasibility study suggests that reserves could be sufficient to support a 3,000-ton-per-day mining operation and an environmental impact study is scheduled to be completed this summer.
Another project where reserves appear to be on the up is the VSM Exploration (ME), Placer Dome (TSE) zinc-copper-silver discovery at Grevet Twp., northeast of Quevillon, Que.
A 55% owned Placer Dome affiliate, VSM has an option to earn a 50% interest in the property from operator Serem, Que.
Reserves there have almost quadrupled a major drilling campaign began early last year and now stand at 10.1 million tons grading 8.27% zinc, 0.44% copper and 1.02 oz. silver per ton.
With a prefeasibility study under way, the joint venture is contemplating a $4.8-million underground exploration program which could begin later this year.
Most of the known reserves occur in two zinc-rich vertically dipping sulphide lenses known as the 111 and 1V horizons. Separated by an average distance of about 250 ft. both zones strike at roughly 120 degrees . Largely overshadowed by the Aur/ Louvem discovery, its proximity to infrastructure could make production a possibility within three years.
Moving just as quickly toward the production stage is Black Hawk Mining (TSE). After acquiring 100% control of the Minago nickel deposit in northern Manitoba last August, Black Hawk has upped the reserve potential to 17.8 million tons grading 1.23% nickel from an initial 2.2 million tons of 1.64%.
Discovered by Amax Exploration back in the 1960s, the deposit is 140 miles south of Thompson under about 250 ft. of Paleozoic limestone cover. Amax walked away from the project because it didn’t meet the U.S. company’s 20-million-ton criterion. Black Hawk, backed by merchant banker DCC Equities (which owns 57% of Black Hawk), is now moving aggressively to examine its potential.
Reserves outlined so far are contained in three separate zones: the large Main zone which has been intersected to a depth of 1,600 ft. and contains five million tons of 1.28% nickel; the South zone containing 2.47 million tons of 1.33% nickel; and the northeast zone where possible reserves are estimated to be 710,000 tons of grade 1.23%.
While nickel companies have been hit by a weakening in the price of nickel, Back Hawk claims the deposit could support an economically viable mine at a price of between US$3-4 per lb. Results from metallurgical studies indicate that recoveries of 77% with a concentrate grading 29% nickel.
At a much earlier stage in the exploration cycle is BP Canada’s (TSE) Daniel’s Pond massive sulphide discovery south of Buchans, Nfld. The future potential was indicated last winter when results from a 16 hole program yielded 18 ft. of grade 18.8% zinc, 1.12% copper, 10.9% lead and 11 oz. silver per ton.
As reported (T.N.M., April 23/90), the zone consists of zinc- lead-copper-silver-gold mineralization in discontinuous high-grade bands which have been traced by drilling over a strike length of about 3,200 ft.
It is too early yet to start thinking about potential tonnage and grade, but follow-up work is scheduled to begin this month and a summer program is likely to include drilling for extensions at depth and along strike.
The property is about 12 miles west of the Tally Pond joint venture where BP has a 40% stake in another base metal deposit currently being explored by Noranda. While reserves at Tally Pond stand at 4.6 millon tons of grade 3.56% copper, 6.55% zinc and 2 oz. silver, more tonnage is required to make the project economically viable.
As low inventories and production cutbacks by big producers should help keep base metal prices high, these and other base metal projects will continue to be watched closely. They are, after all, the potential base metal producers which the industry is looking for to maintain its share of the world market.
For much of last year, the Aur Resources, (TSE) Societe Miniere Louvem (TSE) copper-zinc-rich massive sulphide discovery east of Val d’Or, Que., was the most talked about base metal play in Canada. While smaller than Geddes Resources’ (TSE) Windy Craggy project in British Columbia, it had everything that investors seem to look for in an exploration project — namely grassroots status, seemingly unlimited size potential, a lawsuit and the involvement of two dramatically different junior exploration companies.
Initial euphoria, however, has been quelled by some poor results and uncertainty caused by the legal proceedings. Investors may be casting about for some other promising base metal projects. And there are lots of them.
They include the Hanson Lake copper-zinc project in northeastern Saskatchewan which Trimin Resources (TSE) and Cameco hope to bring on stream by 1992. Situated 40 miles west of Flin Flon, Hanson Lake is held 67.1% by Cameco while Trimin has the remaining 32.9%.
The region is underlain by volcanic and sedimentary rocks that are isoclinally folded and plunge either north or south. According to preliminary estimates, reserves in Hanson Lake’s number two lens stand at 10.8 million tons grading 0.95% copper, 5.76% zinc, 0.42% lead, 0.015 oz. gold per ton and 0.73 oz. silver.
Two other lenses contain 900,000 tons of grade 2.2% copper and 0.84% zinc and 40,000 tons of 8.1% zinc and 1.6% copper respectively.
However results from two holes drilled in the Main number two lens suggests the reserves may increase by as much as 30-45%. Hole HAO-57 intersected 106 ft. of mineralization, including a 20-ft. intersection averaging 3.89% copper at a depth of 1,970 ft. below surface.
A prefeasibility study suggests that reserves could be sufficient to support a 3,000-ton-per-day mining operation and an environmental impact study is scheduled to be completed this summer.
Another project where reserves appear to be on the up is the VSM Exploration (ME), Placer Dome (TSE) zinc-copper-silver discovery at Grevet Twp., northeast of Quevillon, Que.
A 55% owned Placer Dome affiliate, VSM has an option to earn a 50% interest in the property from operator Serem, Que.
Reserves there have almost quadrupled a major drilling campaign began early last year and now stand at 10.1 million tons grading 8.27% zinc, 0.44% copper and 1.02 oz. silver per ton.
With a prefeasibility study under way, the joint venture is contemplating a $4.8-million underground exploration program which could begin later this year.
Most of the known reserves occur in two zinc-rich vertically dipping sulphide lenses known as the 111 and 1V horizons. Separated by an average distance of about 250 ft. both zones strike at roughly 120 degrees . Largely overshadowed by the Aur/ Louvem discovery, its proximity to infrastructure could make production a possibility within three years.
Moving just as quickly toward the production stage is Black Hawk Mining (TSE). After acquiring 100% control of the Minago nickel deposit in northern Manitoba last August, Black Hawk has upped the reserve potential to 17.8 million tons grading 1.23% nickel from an initial 2.2 million tons of 1.64%.
Discovered by Amax Exploration back in the 1960s, the deposit is 140 miles south of Thompson under about 250 ft. of Paleozoic limestone cover. Amax walked away from the project because it didn’t meet the U.S. company’s 20-million-ton criterion. Black Hawk, backed by merchant banker DCC Equities (which owns 57% of Black Hawk), is now moving aggressively to examine its potential.
Reserves outlined so far are contained in three separate zones: the large Main zone which has been intersected to a depth of 1,600 ft. and contains five million tons of 1.28% nickel; the South zone containing 2.47 million tons of 1.33% nickel; and the northeast zone where possible reserves are estimated to be 710,000 tons of grade 1.23%.
While nickel companies have been hit by a weakening in the price of nickel, Back Hawk claims the deposit could support an economically viable mine at a price of between US$3-4 per lb. Results from metallurgical studies indicate that recoveries of 77% with a concentrate grading 29% nickel.
At a much earlier stage in the exploration cycle is BP Canada’s (TSE) Daniel’s Pond massive sulphide discovery south of Buchans, Nfld. The future potential was indicated last winter when results from a 16 hole program yielded 18 ft. of grade 18.8% zinc, 1.12% copper, 10.9% lead and 11 oz. silver per ton.
As reported (T.N.M., April 23/90), the zone consists of zinc- lead-copper-silver-gold mineralization in discontinuous high-grade bands which have been traced by drilling over a strike length of about 3,200 ft.
It is too early yet to start thinking about potential tonnage and grade, but follow-up work is scheduled to begin this month and a summer program is likely to include drilling for extensions at depth and along strike.
The property is about 12 miles west of the Tally Pond joint venture where BP has a 40% stake in another base metal deposit currently being explored by Noranda. While reserves at Tally Pond stand at 4.6 millon tons of grade 3.56% copper, 6.55% zinc and 2 oz. silver, more tonnage is required to make the project economically viable.
As low inventories and production cutbacks by big producers should help keep base metal prices high, these and other base metal projects will continue to be watched closely. They are, after all, the potential base metal producers which the industry is looking for to maintain its share of the world market.
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