In keeping with its plan to become a producer, Sikaman Gold Resources (SKG-T) has acquired a 50% interest in two base metal properties near Rouyn-Noranda, Que.
The Hebecourt property, which hosts a proven reserve of about 1.2 million tons grading 2.8% copper, was once operated by Noranda as the Nuinsco mine.
Before low copper prices forced it to shut down in 1977, the open-pit mine produced 103, (as in 103,000) tonnes grading 2.7% copper. The underground portion was developed to a depth of 450 ft., which, according to Sikaman, will enable it to return the property to production within 12 months. The vendor of the 50% interest is Espalau Mining (epu-m).
The company has also acquired, from privately owned AJ Perron Gold, a half-interest in the adjacent Magusi zinc-copper deposit. Probable reserves stand at 858,000 tons grading 7.29% zinc, plus 228,000 tons of 5.28% zinc.
An additional resource of 1.6 million tons grading 3% copper has been outlined. Plans call for an underground ramp to be developed, extending from surface.
To earn its interests, Sikaman must complete a geological audit of the projects and fund all development costs. To that end, it has arranged to sell an undisclosed royalty interest in both operations for $20 million.
The company hopes to acquire a nearby plant capable of processing 2,000 tons per day.
In keeping with its new focus on domestic base metal prospects, Sikaman intends to change its name and relocate, though details have yet to be announced. The company currently owns properties in Mexico, Argentina and the Central African Republic.
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