HBM&S speeds up 777 schedule

A $360-million program of capital expenditures will see Hudson Bay Mining & Smelting bring its new 777 Deposit, at Flin Flon, Man., into production by 2004, and maintain mine production at Snow Lake.

Hudson Bay, a subsidiary of Anglo American (AAUK-Q), has approved four separate projects under this budgetary umbrella. Shaft-sinking and development on the 777 deposit will be the biggest single item, with the company setting aside $201 million for the work.

The deposit, about 700 metres south of the currently producing Callinan orebody, was discovered in 1993. It boasts reserves of 13.4 million tonnes grading an average of 3.32% copper and 5.78% zinc, plus 2.7 grams gold and 38 grams silver per tonne.

The development of 777 in turn is justifying two other large projects: a $35-million mill expansion to handle the new feed, and an expansion of the Flin Flon electrolytic zinc plant, which will cost a further $100 million. Along with expansion of the plant’s capacity, the project includes replacement of the tank house. All the Flin Flon projects are scheduled to come on-stream in 2004.

At Snow Lake, 120 km to the east, Hudson Bay is bringing the Chisel North deposit into production. The deposit, made up of three separate massive-sulphide lenses, has a 2.4-million-tonne reserve grading 10.8% zinc. Chisel North is being developed via a 2.6-km underground decline from Hudson Bay’s existing Photo Lake mine, which is nearly exhausted.

As part of the Chisel North project, the Snow Lake mill, which ships concentrate to Flin Flon, is being modified to handle the zinc-rich ores from the new mine.