Preferring to sell at higher prices, Black Hawk Mining (TSE) has delayed production at its Redstone nickel deposit in northeastern Ontario. The mine will be closed until the nickel market improves.
The project entered production in late October, 1995, shipping ore to Falconbridge’s (TSE) Strathcona mill in Sudbury, Ont. Grades in previously worked parts of the mine proved inconsistent, although those in newly developed areas have met expectations.
The mine features several producing stopes; more are under development, and a new access level is ready for production when the mine is started up again. Reserves stand at 170,000 tonnes grading 3.28% nickel and 0.04% cobalt.
Falconbridge’s purchase contract with Black Hawk for up to 300 tonnes of Redstone ore per day has been suspended, but Black Hawk is confident the contract can be renewed.
The company will, in the near term, concentrate on developing gold properties, including the Keystone project at Lynn Lake, Man., where the Farley Lake deposit is being stripped for open-pit production, to start in May.
Meanwhile, ongoing drilling at Hoyle Twp. property has confirmed that mineralized zones exist at depths of 350 metres below surface; results from this program are being compiled so that the resource estimate can be revised. Black Hawk will then consider an underground exploration program for definition drilling and bulk sampling.
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