Cameco decision on Hanson hinges on results of drilling

Cameco’s other partner in the Hanson Lake project, Trimin Resources (VSE), has the right to acquire half of Esso’s interest. By making a combined payment of $2.1 million for Esso’s share, Cameco’s interest would rise to 67% and Trimin’s to 33%.

Gerry Pollock, vice-president of exploration for Cameco, said the buyout decision will be made sometime after the last hole is completed in the current program. The joint venture had planned on drilling about 11,000 m but they won’t complete that much, he said. “We will be saving some,” he added.

Cameco is very encouraged by what it’s seen so far and Pollock confirmed that the McIlvenna Bay zone at Hanson Lake “continues to considerable depth and is very consistent in grade.”

Recent drilling has attempted to delineate the zone down dip and down plunge. But he said they haven’t “done a lot of drilling along strike even though there’s a fair strike length of this zone to be tested.” The zone is still open down dip but not along strike at the moment, he added.

Their drill pattern is quite wide (100-m spacing) and he conceded “it’s pretty hard to talk about ore reserves. But as I said, it’s so continuous that we are encouraged.”

Prior to the drill program the company had outlined a “geologic” reserve in three zones. Lens No 1 included 400,000 tonnes of 2.5% zinc and 1.7% copper to a vertical depth of 300 metres. Lens No 2 hosted 3 million tonnes averaging 7.5% zinc and 0.8% copper to the 500 m level, while lens No 3 had 40,000 tonnes grading 8.1% zinc and 1.6% copper to the 150 m level. Significant mineralization has been intersected on the 600- and 700-m levels.

Past production from the Hanson Lake property amounted to 160,000 tons grading 9.9% zinc, 5.83% lead, 0.51% copper and 4 oz silver in the late 1960s.

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