Cameco project closely watched

Since beginning exploration in 1988, 7.7 million tons grading 1.1% copper, 6.5% zinc, 1.0 oz silver and 0.02 oz gold per ton have been outlined in lens two. Two other smaller lenses higher in the volcanic stratigraphy have also been partially drilled off.

Lens one hosts 440,000 tons grading 2.5% zinc and 1.7% copper whereas lens three has 44,000 tons grading 8.1% zinc and 1.6% copper. Neither of these reserves is included in the 7.7-million-ton reserve figure published by the partners.

What has excited investors and the companies is the excellent continuity between drill holes in lens two. Although the drill spacing is 328 ft wide, the program to date has been able to define a sizeable resource to a depth of 2,953 ft. The lens is defined along strike for 1,641 ft.

For Trimin, the Hanson Lake find has been a godsend. The company began life as most Vancouver juniors begin life — with a grassroots gold prospect. This one, known as the Indian project, was a joint venture with Esso Minerals, the minerals arm of Canada’s largest oil company, Imperial Oil.

In June, 1988, Esso invited Trimin to participate in a base metals play in Saskatchewan. For $700,000, the company could earn a 24.5% interest. Th at project was Hanson Lake which has since blossomed into a significant zinc- copper discovery displaying good mine-making possibilities.

After Esso decided to sell all its Canadian mineral assets earlier this year, Trimin and Cameco opted to increase their interests in the project to 67.1% and 32.9% respectively. Trimin’s share of the acquisition cost came from a $1.2-million debenture placed privately by Dean Witter Reynolds, a Toronto investment firm.

But the real acid test for Trimin came in early September, when a group of mining analysts toured the site and examined sections and drill core. Hanson Lake got a thumbs-up and Trimin’s stock took off from $1.90 to $3.25.

During a tour in September of several investment houses in London and Zurich, the project received a positive response. “We were well received in Europe,” Randy Turner, Trimin’s president told The Northern Miner following the trip.

Plenty of cash will be required in the future as the project progresses through the feasibility stage. A prefeasibility study completed by Cameco was based on a 3,000-ton- per-day mining and milling facility. Capital costs were estimated at $89 million with mining and milling cash costs at $38 per ton.

At the site, drilling will stop for a short period before resuming this winter, Turner says.

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