Greenstone/Dragoon venture in 9-month tune-up stage

Production of silver-lead-zinc concentrates is under way once again at the Comstock Silver Cup mine in British Columbia’s Slocan mining district, The Northern Miner has learned.

Nearly 70 years since the property closed down, joint venture partners Greenstone Resources (TSE) and Dragoon Resources (VSE) are processing ore contained in a number of old dumps and stopes.

The joint venture was formed last October when Greenstone agreed to earn a 50% interest from operator Dragoon by purchasing 500,000 Dragoon treasury shares at 40 cents per share in two instalments. Greenstone also agreed to put up $500,000 in working capital for property development.

During the winter months, the partners spent $750,000 on underground diamond drilling before making a production decision.

With a current daily capacity of 150 tons per day, the Comstock property produced about 5,000 tons grading 98 oz silver per ton and 56% lead around the turn of the century. It contains a shaft and nine levels of mine workings down to a depth of 1,400 ft.

While milling is being performed at Dragoon’s Ainsworth mill, initial volumes will be at lower levels during the first several months as equipment and systems are tuned up. The mill is located 60 miles northeast of Comstock.

“We are currently attempting to increase our production by developing additional reserves from underground.” said Dragoon President Bob McGowan.

Meanwhile, the partners have signed custom milling contracts to process ore from the nearby Arlington and Ivanhoe mines.

With about 21,000 tons of ore contained in the stopes and dumps, Bruce Winfield, Greenstone’s vice- president exploration, says the potential exists for one million tons of mineralized material.

“About 20% of that would be ore grade material,” said Winfield. His projections are based on recent sampling from old stopes and geological setting similar to Dickenson Mines’ Silvana operation located six miles further north.

“There are no indications, so far, that the mineralized structure is terminating on the ninth level,” said Winfield.