They are predicting they should know by November whether or not they have the mineable tons of pentlandite in the ground to justify a production shaft at the Redstone mine and a new concentrator at the Langmuir property, five kilometres away.
William Headerson, general manager of the Redstone mine, which is operated by Timmins Nickel (TSE) and 49%-held by BHP- Utah Mines (a wholly-owned subsidiary of Australian mining giant Broken Hill Proprietary) told The Northern Miner on a recent visit to the mine site that his company has a threshold tonnage in mind.
If it is exceeded in a major deep drilling program commencing within three weeks, a decision to move from a single, small-tonnage, ramp-haulage mining and custom- milling operation to a full-fledged independent mining/mill operation drawing ore from two deposits would be justified. He would not say what that threshold figure is.
This week Timmins Nickel raised $6.65 million in an over-subscribed initial public offering (3.8 million shares at $1.75), which earned it a position on the TSE.
A small portion of that money will be used to drill about 12 deep holes, using two machines, to test the continuity of the narrow, nickel- bearing structure of the Redstone mine to depths below 1,000 ft.
“That drill program should take about three months to complete, but we should know if the zone is continuous after about two months of drilling,” mine geologist and exploration manager Kenneth LaPierre says.
Above the 1,000-ft level, the company has blocked out about 330,000 tons of mineable ore averaging 2.89% nickel.
Drilling is also planned on the nearby Langmuir property where probable reserves are about 165,000 tons averaging 2.1% nickel. A ramp was driven in 1977 to within 100 ft of that mineralized zone, but is currently flooded.
Timmins Nickel (as operator) has hired about 50 new workers for the Redstone project and about 25 more will be hired this month. At the time of our visit, about 20 contract miners employed by Dynatec Mining (President Robert Dengler is also a director of Timmins Nickel) were winding down their development contract at the mine. Three stopes were in production and another was being developed.
“We’re confident we can supply the 300 tons of ore per day, targeted for the rest of 1989,” Headerson says. A Bailey bridge was being erected across the Redstone River at the time of our visit and a power line into the mine site was well advanced. Once completed, both of these projects should reduce operating costs significantly. Operating expenses are currently budgeted at $1 million a month.
Ore is being stockpiled on surface and is trucked by contractor to the Government of Ontario Mill (GOMILL) in Schumacher.
About 1 million pounds of nickel in concentrate (grading about 15% nickel) have been shipped to Sherritt Gordon’s nickel refinery in Fort Saskatchewan, Alta. since the mill began operations in May, Mill Superintendent Tony Lipiec says. At today’s high nickel prices of $5.65(US) per lb, the mine is clearing about $140(C) for every ton of ore it hauls up from underground. This suggests the operation could turn a profit even if nickel prices were to fall significantly to pre-1988 levels.
But if the company wanted to produce 400-600 tons of ore per day from both the Redstone and the nearby Langmuir property, that would be squeezing the GOMILL too tightly, Lipiec says. Deep Drilling
One deep intersection (hole T11) about 1,400 ft below the mineable tonnage at Redstone suggests the structure does continue to depth. But evidence that it is one and the same structure is not perfect.
In July, the Geological Survey of Canada conducted a down-hole geophysical survey (between holes T10 and T11) which measured the electrical resistivity and electrical potential between two drill holes. The scientist responsible for that work concluded the zone is continuous, LaPierre says. Drilling will confirm this.
Together with the potential to commence production from the Langmuir property, these two projects could potentially support an independent mill rated at 1,000 tons per day. Such an operation would be less costly to operate than the current toll milling arrangement with Giant Yellowknife. That company is in the process of winding down operations at its Schumacher mill.
Operators of one of Canada’s smallest nickel mines, 23 km southwest of here, are optimistic about becoming bigger.
They are predicting they should know by November whether or not they have the mineable tons of pentlandite in the ground to justify a production shaft at the Redstone mine and a new concentrator at the Langmuir property, five kilometres away.
William Hedderson, general manager of the Redstone mine, which is operated by Timmins Nickel (coats) and 49%-held by BHP-Utah Mines (a wholly-owned subsidiary of Australian mining giant Broken Hill Proprietary) told The Northern Miner on a recent visit to the mine site that his company has a threshold tonnage in mind.
If it is exceeded in a major deep drilling program commencing within three weeks, a decision to move from a single, small-tonnage, ramp-haulage mining and custom- milling operation to a full-fledged independent mining/mill operation drawing ore from two deposits would be justified. He would not say what that threshold figure is.
This week Timmins Nickel raised $6.65 million in an over-subscribed initial public offering (3.8 million shares at $1.75).
A small portion of that money will be used to drill about 12 deep holes, using two machines, to test the continuity of the narrow, nickel- bearing structure of the Redstone mine to depths below 1,000 ft.
“That drill program should take about three months to complete, but we should know if the zone is continuous after about two months of drilling,” mine geologist and exploration manager Kenneth LaPierre says.
Above the 1,000-ft level, the company has blocked out about 330,000 tons of mineable ore averaging 2.89% nickel.
Drilling is also planned on the nearby Langmuir property where probable reserves are about 165,000 tons averaging 2.1% nickel. A ramp was driven in 1977 to within 100 ft of that mineralized zone, but is currently flooded.
Timmins Nickel (as operator) has hired about 50 new workers for the Redstone project and about 25 more will be hired this month. At the time of our visit, about 20 contract miners employed by Dynatec Mining (President Robert Dengler is also a director of Timmins Nickel) were winding down their development contract at the mine. Three stopes were in production and another was being developed.
“We’re confident we can supply the 300 tons of ore per day, targeted for the rest of 1989,” Headerson says. A Bailey bridge was being erected across the Redstone River at the time of our visit and a power line into the mine site was well advanced. Once completed, both of these projects should reduce operating costs significantly. Operating expenses are currently budgeted at $1 million a month.
Ore is being stockpiled on surface and is trucked by contractor to the Government of Ontario Mill (GOMILL) in Schumacher.
About 1 million pounds of nickel in concentrate (grading about 15% nickel) have been shipped to Sherritt Gordon’s nickel refinery in Fort Saskatchewan, Alta., since the mill began operations in May, mill superintendent Tony Lipiec says.
At today’s nickel prices of $5.65 (US) per lb, the mine is clearing about $140(C) for every ton of ore it hauls up from underground. This suggests the operation could turn a profit even if nickel prices were to fall significantly.
But if the company wanted to produce 400-600 tons of ore per day from both the Redstone and the nearby Langmuir property, that would be squeezing the GOMILL too tightly, Lipiec says. One deep intersection (hole T11) about 1,400 ft below the mineable tonnage at Redstone suggests the structure does continue to depth. But evidence that it is one and the same structure is not perfect.
In July, the Geological Survey of Canada conducted a down-hole geophysical survey (between holes T10 and T11) which measured the electrical resistivity and electrical potential between two drill holes. The scientist responsible for that work concluded the zone is continuous, LaPierre says. Drilling will try to confirm this.
Together with the potential to commence production from the Langmuir property, these two projects could potentially support an independent mill rated at 1,000 tons per day. Such an operation would be less costly to operate than the current toll milling arrangement with Giant Yellowknife. That company is in the process of winding down operations at its Schumacher mill.
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