By late April, Formosa Resources (VSE) expects to achieve its targeted production rate of 400 tons per day at its Formosa-Silver Butte polymetallic mine project near Riddle, Oreg. The company, slightly behind schedule because of equipment delivery delays, is currently test-running the mill at 150-200 tons per day. “So far, start-up has gone smoothly,” said Formosa President Kuang Lu.
Recent activity on the property included the completion of 53 ore-definition holes and the collection of more than 10,000 channel samples in preparation for mining and to facilitate grade control.
This new data, combined with previous information, was used to formulate a new reserve estimate. The company is now reporting minable reserves of 459,240 tons grading 3.04% copper, 2.92% zinc, 0.042 oz. gold and 1.21 oz. silver per ton.
According to company engineers, at least 60,000 tons grading about 5.7% copper and 0.3% zinc can likely be developed down dip in the A zone with little additional effort.
As of mid-January, the mine contained 10,924 ft. of underground workings, including 8,958 ft. of drifts on seven levels, 840 ft. in connecting raises and four declines with a combined length of 1,126 ft.
The company said this development is adequate to sustain a mining rate of 400 tons per day for at least one year.
Formosa is also active on a number of other mineral projects in the western United States and in Canada.
It is involved in a joint venture with Island-Arc Resources (VSE) to explore the Lockwood volcanogenic massive sulphide project near Everett, Wash. The pair is currently negotiating with a third party whereby the third party could earn an interest in the property by performing exploration work and by making cash payments.
A 9-hole drill program carried out on the property last fall returned base metal mineralization in six of the holes. The best hole returned 16.1 ft. grading 3.30% zinc, 3.37% copper, 0.73 oz. gold and 2.65 oz. silver.
Other results include 8.8 ft. of 4.52% zinc, 1.9% copper, 0.043 oz. gold and 0.86 oz. silver, and 5.6 ft. of 3.83% zinc, 2.28% copper, 0.026 oz. gold and 0.47 oz. silver.
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