Sanca Gold, a private Alberta company, has entered into an agreement with Black Hawk Mining (BHK-T) to acquire the Redstone nickel mine, 22 km southeast of Timmins, Ont.
The property consists of 63 claims totalling 2,476 acres, plus related equipment and infrastructure necessary for placing the mine into production.
Redstone produced nickel commercially from 1989 to mid-1992, when it was owned by Timmins Nickel.
Redstone acquired the mine in late 1992 and, two years later, completed diamond drilling that confirmed the downdip extension of the known ore zone below the 800-ft. level. The company secured the necessary permits to reopen the mine in May 1995 and proceeded to dewater the underground workings. Ramp development and production got under way later that year, with crushed ore sent to Falconbridge’s Strathcona mill in Sudbury. However, mining was discontinued in early 1996 when nickel prices declined and grades in the upper levels were found to be inconsistent with previous estimates.
Reserves were last pegged at 182,325 tonnes grading 3.28% nickel and 0.038% cobalt.
Sanca has budgeted $300,000 for a first-phase program of line-cutting, geophysics, mapping and sampling. Diamond drilling will follow, at an estimated cost of $700,000.
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