Go-ahead on Ansil upcoming by Minnova

A production decision is expected to be made in the third quarter of this year on the high grade Ansil copper deposit in the Lac Dufault camp near Rouyn- Noranda, Que., with production slated to start some 12 to 15 months later.

It is not inconceivable that production could start earlier, says John Carrington, vice-president operations of Minnova Inc. (formerly Corporation Falconbridge Copper). But he stresses the actual timing is “a give and take situation” and will depend on the results of the current phase one underground exploration program.

Some 13,000 m of detailed underground diamond drilling is scheduled to start this month to delineate the deposit and to test for deeper extensions of the orebody below the massive sulphide zone. The current drill indicated reserves at Ansil stand at 2.1 million tonnes grading 7% copper, 0.5% zinc, 24 g silver per ton and 1.7 g gold per ton.

This drilling program will also determine the ultimate depth of the production shaft. This shaft has already been completed to its initial depth of 1,400m below surface. The shaft could go to the 1,600 m level, but the bottom of the deposit has yet to be defined.

Other progress at the Ansil includes the installation of dumping stations and the lowering of mining equipment. Drifting has started on the 1,220, 1,280, and 1,340 m levels.

Sinking of the ventilation shaft started last October and is now at 561m, almost half of its way to its ultimate depth of 1,380m. The service building complex has been completed and is now in full use by operational and technical personnel.

Minnova has so far spent some $12 million on the project with an additional $20 million budgeted for this year.

When the Ansil does go into production, it would be at a rate of 450,000 tonnes per year. At that time, the plan is to send the Ansil ore to the company’s nearby Norbec mill for concentration. Where the Ansil concentrate will be shipped for further processing is still uncertain, says Mr Carrington. However, in times past, concentrate produced by the company’s Lac Dufault division has gone to Noranda Inc.’s nearby Horne copper smelter at Rouyn- Noranda.

Noranda holds a 49.4% direct and indirect interest in Kerr Addison Mines which last August purchased Minnova (then Falconbridge Copper) from Falconbridge Ltd. for $120 million. Winston is ahead

At Minnova’s Winston Lake high grade zinc project, which will be brought into production in 1988, the underground development program is proceeding ahead of schedule, says Minnova President Ian Bayer.

Development of hangingwall and stope access drives continued on the 565, 585 and 605 m levels. Definition diamond drilling from the 605m and 615m levels is now sufficient to complete the detailed layout of the 1988 production stoping blocks. The major raises for the ventilation and fill systems will be completed this quarter, adds Mr Bayer.

On surface, engineering design work is 80% complete. The concentrator building has been enclosed, the ball and regrind mills mounted and the service building complex is virtually complete, says Mr Bayer.

An environmental open house and public meeting was held in February with approval to clear the tailings area granted. Government approvals are still pending for the tailings dam structure and the environmental systems.

The Winston Lake deposit hosts probable and possible reserves of 3.4 million tons grading 1.0% copper, 16% zinc, 0.96 oz silver and 0.03 oz gold per ton. So far, Minnova has spent $27 million on the project with an estimated $45 million still needed to place the mine into production. 006 Expand at Lac Shortt

At the company’s Lac Shortt division, the priority is to expand reserves. At year-end 1986, drill indicated, proven and probable reserves were estimated at 1.552 million tonnes grading 4.9 g gold per tonne.

Lac Shortt has a number of exploration possibilities, says Mr Bayer, two of which are currently being tested. One is an exploration drift on the 250 level to test a gold bearing structure about 1,000 m west of the mine workings. However, this drift encountered heavy water inflows and the program is delayed by about two months.

The second program is a cross- cut on the 500 level, north into the hangingwall to test the extension of the orebody below the 500 level. Mr Bayer says initial drilling at depth on the main orebody indicates the zone continues at least to a depth of 750 m, or 250 m below the present workings.

Last year Lac Shortt produced 64,031 oz of gold, up from 51,300 oz in 1985. Struggling Opemiska

The Opemiska division is struggling to find and develop sufficiently high grade gold reserves to complement copper production, says Mr Bayer. Last year the division produced 39,586 oz of gold, a decrease from 49,348 oz produced in 1985. At year-end 1986, reserves in the division stood at 663,000 tonnes grading 1.5% copper and 2.88 g gold per tonne.

In this year’s first quarter some $1 million was spent on underground exploration and development programs at Opemiska in an accelerated effort to maintain reserves, says Mr Bayer. This contributed to a $300,000 operating loss for the division in this period.

Looking at overall financials for this first quarter, Minnova posted a net income of $493,000 or 4 cents per share on revenues of $14 million. This is down from the net income of $1.7 million or 13 cents per share posted in the same period of 1986 on revenues of $19.6 million.

These results reflect lower mine production, reduced investment income and smaller investment gains in the first quarter of this year, says Mr Bayer. Production revenue and mine operating profits were both below the levels achieved in the comparable period of 1986. However, this was anticipated due to the closure of the Corbet mine in the Lac Dufault division last September and declining production from the Opemiska division.