Geddes to spend $10M

The aptly named Windy Craggy property is located in rugged, mountainous terrain, near the Alaskan border.

Underground exploration on the remote property has been ongoing since 1987 and has begun to produce tangible results.

Recently calculated drill-indicated and possible reserves are estimated at 77 million tons of 2.4% copper, 0.007 oz gold, 0.082 oz silver per ton and 0.08% cobalt. The ultimate reserve potential of the deposit is projected to be at least double this tonnage.

Earlier estimates had suggested the deposit contained up to 300 million potential tons grading 1.5% copper, with additional values in cobalt and gold.

The company says its focus this year will be to delineate the ore reserves with greater precision. Discerning the geometry of the large deposit ha s proved to be a challenge in the past.

The massive sulphide mineralization consists of pyrrhotite, pyrite and chalcopyrite. Cobalt values correlate with the pyrrhotite. The host rocks consist of Mesozoic volcanic flows and argillite sediments.

This year’s work will consist of underground drilling and tunnelling, as well as studies on mining methods, and metallurgical characteristics of the ore. Other studies will be done on site locations, access routes, and environmental implications of mining the deposit.

Management says it is considering open pit mining of the upper portion of the deposit followed by large scale bulk underground mining of the lower portions. A gold- enriched zone may be mineable as a separate operation on a smaller scale, the company says.

Last year, Northgate Exploration (TSE) became a major investor in Geddes Resources and currently holds 31% of the equity of the company.

The Windy Craggy deposit was initially discovered in 1958 by prospectors working for Falconbridge Ltd. (TSE), who traced copper- mineralized boulders back to their source on the 6,500-ft high Windy Craggy Mountain. A subsidiary of Falconbridge retains a 22.5% interest in the net proceeds from any future production.

Since Geddes began working on the property in 1981, it has spent a total of $21.9 million on exploration.

Shares of Geddes Resources have traded at $1.35 recently on the Toronto Stock Exchange. The company has about 14.8 million shares issued and outstanding.

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