Breakwater to reopen Estrades

The Estrades zinc-gold mine in northwestern Quebec is expected to resume production in March, 1993, and reach a production rate of 10,000 tonnes per month within four months.

The mine will be operated by Breakwater Resources (TSE), which is currently negotiating to buy the remaining 30% interest to give it a 100% undivided interest.

Breakwater managed Estrades for less than a year before suspending operations in 1991. Low metal prices, increased costs and excess dilution were cited as the main reasons why production and revenues did not meet original expectations.

The company recently dewatered the mine, completed an engineering review of reserves, and conducted an economic feasibility study. “We re-ran the numbers with gold and zinc prices at current levels, and found they returned an acceptable level of profit even at those low prices,” said Russell Alley, chief operating officer. “We see plenty of upside, particularly if zinc prices improve, as 60% of our revenues will be from zinc.”

A new mining plan is in place, and the dilution problem will be addressed by using a modified cut-and-fill mining method and by careful attention to grade control. Contract miners were used during the previous operating run, but Breakwater will now be hiring and supervising its own miners. Proven and probable reserves at Estrades are reported as totalling 276,000 tonnes grading 7.47 grams gold per tonne, 215.33 grams silver, 0.88% copper, 1.34% lead and 13.16% zinc. An additional 500,000 tonnes of lower-grade reserves classed as preliminary have been identified, and will be explored further.

Rehabilitation and preproduction maintenance is currently under way at the mine site.

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