Falco ponders new Timmins mine

Falconbridge (FL-T) has outlined a positive development plan for itsMontcalm nickel-copper project, situated 70 km northwest of Timmins, Ont.

The Dighem Syndicate discovered the Montcalm deposit in 1976 and it wasfurther explored by Finland’s Outokumpu Mines from 1993 until 1997.

Falconbridge first became involved in the project in 1999 and has sincespent more than $16 million completing a feasibility study which hasoutlined a sulphide reserve of 5.1 million tonnes grading 1.46% nickel and0.7% copper — sufficient for an 8.5-year mine life.

The deposit would be accessed from underground via a portal and ramp, andore would be trucked to Falco’s Kidd metallurgical plant in Timmins forprocessing.

If Montcalm goes ahead, the copper and zinc-oriented Kidd facility willrequire modifications to treat nickel-bearing ore, which could conceivablylead to the development of other, similar deposits in the Timmins area.

Falconbridge believes that commercial production levels could be achievedat Montcalm within 16 months of starting development, and at a capital costof $141.5 million.

The new mine would also create about 145 direct jobs in the area.

The project is now wending its way through Falco’s internal reviewprocess, and the company is also waiting for approval from Ontario’sMinistry of Environment for environmental permits, including a Certificateof Approval for water treatment and discharge.

Falco says that the discharge of clean, treated water from the Montcalmmine site directly to the Groundhog River has been selected by both it andthe provincial government as the most environmentally sound approach todeveloping the mine.

In particular, the company says that concerns raised by some regardingthe proximity of the development to sturgeon spawning beds is “unwarranted”and that it is “confident that there will be no adverse impact on bioticcommunities and fish populations or on water quality.”

Currently, Falco is looking at two water-discharge options:

* One is a 15-km buried pipeline from the Montcalm mine to an existing44-ha Falconbridge claim that divides the proposed boundaries of therecommended Groundhog Provincial Waterway Park. This option does not requireamendment to the proposed boundaries of the recommended park.

* The second option consists of an 8-km naturalized drainage way, thefinal 200 metres of which would lie within the proposed boundaries of thepark.

With respect to the second option, Falco is proposing a land-rights swap,whereby it would relinquish 22 ha of land associated with the pipelineoption to the Crown in return for temporary drainage-way access rightsthrough 2 ha of the proposed park.

Upon closure of the mine, the drainage way access would return to theCrown.