HudBay over half way on exploration shaft

Hudson Bay Mining and Smelting reports it is on schedule with an exploratory shaft at its nickel ore discovery beneath Namew Lake, 40 miles south of Flin Flon, Man.

Diluted recoverable reserves at the project are estimated at 2.82 million tons assaying 2.44% nickel, and 0.9% copper, with minor amounts of platinum and palladium.

The shaft, being sunk to a planned depth of 1,350 ft., is currently at a depth of below 690 ft., Peter Martin, exploration vice- president, tells The Northern Miner.

Dr J. Blair Howkins, deputy board chairman, and chief executive officer, says in an interim report that Hudson Bay is considering joint venture opportunities for the Namew Lake project, that would reduce the company’s capital risk if development is determined to be feasible.

For the second quarter this year Hudson Bay reports a net loss of $9 million on revenues of $62.4 million, against earnings of $700,000 on revenues of $75.6 million in the similar period last year.

For the six months to June 30, 1986, the company had a net loss of $12.8 million on revenues of $130.5 million, compared with a net loss of $2.9 million on revenues of $148.8 million in the first six months of 1985.

Mr Howkins says the second- quarter loss was largely the result of continued depressed zinc price levels, reduced copper production from a planned smelter maintenance shutdown in April, and increased expenses for further exploration at the Namew Lake project.

Copper production and sales in the latest quarter were significantly below 1985 levels, he notes, adding that although zinc volume increased, prices were significantly below the average for the second quarter of 1985.

The price outlook for the remainder of the year looks promising, however, he said.