Cominco ponders restarting mine

A buoyant zinc market has induced Cominco (CLT-T) to consider reopening the Sa Dena Hes zinc-lead mine, 45 km north of Watson Lake in southeastern Yukon.

The mine was closed in December 1992 as a result of low zinc prices.

Ownership is held jointly by Cominco, the operator, with a 25% interest, and Teck (TEK-T), also with 25%. Korea Zinc owns the remaining half.

The consortium purchased the San Dena Hes mine, along with the Cirque zinc-lead property in northern British Columbia, in late 1993 for $43 million.

Under the former ownership of Curragh and Hillsborough Resources, the Sa Dena Hes mine began production in August 1991 and produced 807,500 tonnes of concentrate containing 374,400 tonnes of payable zinc and 290,200 tonnes of lead during the 14 months of operation.

The site is well-equipped, featuring: underground workings; ore-handling facilities; a 1,500-tonne-per-day conventional mill; load-out facilities; a tailings and reclamation system; shops, warehouse, security and first-aid office; a 200-man camp; administration building; and a 6.2-MW diesel generation power plant.

Measured and indicated reserves amount to 1.4 million tonnes grading 10.2% zinc, 2.5% lead and 44 grams silver per tonne. A further 700,000 tonnes grading 11.8% zinc, 4.6% lead and 59 grams silver are classified as a probable resource.

While Cominco has called for tenders in order to facilitate the possible reopening of Sa Dena Hes, such a decision will be determined by zinc market conditions.

Cominco says that the earliest the mine could resume operations would be in the second quarter of 1998.

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