Joint-venture partners Great Lakes Minerals (TSE) and Brookline Minerals (VSE) will begin developing the 543-S copper project in Michigan’s Keweenaw Peninsula.
Brookline will fund the $5.5-million, 3-phase program, with Great Lakes acting as operator. Production proceeds will be split 75% to Brookline and 25% to Great Lakes until payback of capital; thereafter, proceeds will be divided equally.
Phase one will include collaring the portal and driving a 2,470-ft.-long decline ramp. Four sublevels along the decline will be excavated to gain access to the orebody, which contains minable reserves of 1.1 million tons grading 4% copper.
Nearly 30,000 tons of ore will be extracted during phase one, development work having advanced 900 ft. along the four sublevels. A “sublevel retreat” method of mining will be used, which incorporates pillars, rather than backfill, for ground control.
Phase two will entail further preproduction work such as vent-raising and extension of the decline to its ultimate depth of 600 vertical feet. Phase three will signal the beginning of sustained production.
Dynatec Mining will develop and mine the deposit on a contract basis. It estimates the property will produce 25 million lb. copper per year for four years at a cash cost of around US80 cents per lb.
Great Lakes has a life-of-mine milling agreement with Metall Mining’s (TSE) nearby Copper Range facility. Copper concentrates will be custom-milled at an as-yet-to-be-determined North American smelter.
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