Inco outlines new deposit

Nickel giant Inco (TSE) has discovered a high-grade deposit near Thompson, Man.

Known as Pipe Deep, the deposit is 20 miles south of Inco’s Thompson processing facilities and 1 mile from the Pipe 2 mine production shaft. The first hint of the discovery came in 1992, when exploration drilling intersected new mineralization following an extensive reinterpretation of the complex geology in the Thompson belt.

Based on 16 drill-hole penetrations, the deposit is estimated to contain a mineral resource of 4 million tons grading 2.32% nickel, which exists 2,800-5,200 ft. below surface. It also contains minor amounts of copper (about 0.1%) and traces of cobalt and platinum group metals. The mineralization is open at depth and along strike and is associated with a geological structure that extends for 2 miles to the north. Some of the better intersections include 3.35% nickel over 46.9 ft. in hole 86232, 2.77% nickel over 16.8 ft. in 86242 and 2.71% nickel over 23.5 ft. in 86244. According to Richard Worsfold, Inco’s director of exploration (Technical Services), the mineralization is similar in grade to that of the Thompson mine.

At Thompson, the ore is broadly associated with bodies of peridotite. Some of the mineralization occurs in, and on the margins of, the peridotite itself, but the bulk of the known ore is in the enclosing sedimentary rocks. These enclosing rocks have been folded, converted by metamorphism into gneisses and schists, and injected by pegmatite.

The ore consists of pyrrhotite, pentlandite, minor pyrite and small amounts of chalcopyrite.

Inco began searching for nickel in Manitoba in 1946. After 10 years of persistent exploration, the company announced that two mines would be developed, one at Moak Lake and the other near Mystery Lake, which would be known as the Thompson mine.

By 1961, the Thompson mine was in full production, with the mill operating at 5,000 tons per day.

Four drills are turning on the Pipe Deep property and exploration is expected to continue throughout 1995. Following this year’s program, an engineering study will be conducted to determine the feasibility of entering production. Today, Inco has two producing mines in the Thompson area, Birchtree and Thompson. These operate at a combined rate of 10,000 tons per day and have sufficient reserves to sustain mining for at least 20 years. The company has four other mines on a standby basis: Pipe No. 1, Pipe No. 2, Soab North and Soab South.

The Manitoba operations produce about 100 million lb. nickel per year.