Cominco Res. pursues copper interests

Copper is featured more prominently than gold in the current list of projects being actively explored or developed by Cominco Resources International (TSE) around the world.

And more projects could be generated once the company concludes its negotiations with Cominco (TSE) and Teck (TSE) and begins a 3-year exploration joint venture aimed at finding large tonnage copper deposits in Chile.

Cominco Resources would operate the program on behalf of the joint venture, and would also have a one-third working interest in any properties acquired as a result of the work. The company would not be required to contribute to this year’s budget of $1.5 million, but would fund its share of subsequent programs.

Cominco Resources is already active in Chile, and recently started a 5,000-metre drill program on the Lomas Verdes copper-oxide property near Antofagasta. This program will test for mineralization around a known occurrence, and will also test other targets along a large mineralized structure.

The company also has a 10% interest in the Quebrada Blanca copper project where mine construction is now under way. Current work includes stripping of overburden, construction of an access road and relocation of an airstrip. Cominco Resources recently sold a 32.5% interest in Quebrada Blanca to Teck and received cash payments totalling $12.7 million. Parent company Cominco also has an interest in this project where oxide reserves will be processed using the solvent extraction-electrowinning (SX-EW) process. Cominco Resources is also involved in two copper projects in Mexico. Concentrator throughput at the 49% owned Maria copper mine was 48,000 tonnes grading 10.2% copper during this year’s second quarter, and its share of production (copper in concentrate) for the period was five million lb. A surface drill program was also started to test a number of targets for additional high-grade mineralization.

Meanwhile, the 100% owned Mariquita copper project in Mexico was advanced to the feasibility stage. This project is believed to have the potential to produce 25 million lb. per year of low-cost cathode copper for about 10 years, using the SX-EW process.

About $1 million will be spent this year for a program of definition drilling on the high-grade Cerattepe copper project in Turkey. The company owns 100% of this property where preliminary results from the program are confirming 1991 drill results.

Several new holes intersected the copper zone, and mineralized intervals included 7.4 metres grading 20% copper, 12.9 metres of 15% copper and 6.5 metres of 19% copper. A full feasibility study is planned for this project once the drilling is completed in October.

Closer to home, Cominco Resources reported that its 50% owned Glenbrook nickel smelter in Oregon achieved the highest monthly operating rate since being restarted. An ore importation project is on schedule for completion early in the fourth quarter, and the smelter is expected to be producing at an annual rate of 36 million lb. of nickel by year-end.