Noranda reports Lynne reserves, limited potential seen for increase

Results from the first 39 holes completed at the Lynne project in Oneida Cty., Wis., indicate the property contains preliminary reserves of 6.14 million tons grading 7.10% zinc, 0.34% copper, 1.84% lead, 3.08 oz. silver per ton and 0.013 oz. gold, reports Noranda Exploration, a unit of Noranda (TSE). Calculated to a vertical depth of 420 ft. below bedrock surface (470 ft. below surface), the reserve figure reflects Noranda’s preliminary design for an open pit mine at the site.

Although the company plans to update the estimate — incorporating data from over 100 holes — later this spring, project manager Michael Donnelly says the final figure will not be substantially higher than six million tons. The latest results indicate that the deposit thins out along strike to the east and west of discovery hole 90-2, which returned 379.7 ft. grading 8.54% zinc and 0.26% copper. Hole 90-44, for example, drilled 400 ft. west of the discovery, returned a 2-ft. section grading 4.23% zinc. At the eastern limit of the deposit, about 500 ft. from the core, holes 91-62 and 91-65 returned narrow widths of not more than 10 ft.

“The thickest and best part of the deposit is around the first discovery holes (90-1 and 90-2) and it thins out from there,” Donnelly said.

The Lynne deposit is made up of four main lenses, stacked one upon the other and dipping at about 45

to the north (see story, Page B1). Noranda drilled all holes from north to south.

All sites that require winter access have been drilled, Noranda says, but an additional 10-12 holes are planned for May and June to complete definition drilling. A total of 114 holes have been drilled to date.

In late spring, Noranda will submit a Notice of Intent (NOI) with the Wisconsin Department of Natural Resources. The NOI will initiate the environmental permitting process, but Noranda does not expect to secure mine permits for at least three and a half years.

Results from the 40 holes (90-28 to 91-67) recently released include: In the vicinity of holes 90-1 and 90-2: Hole Depth Width Zinc Copper Lead (ft.) (ft.) (%) (%) (%) 9043 550 134.0 08.39 0.33 2.29 9049 190 133.0 15.18 1.50 2.10 9150 72 319.0 16.85 0.80 1.53 9151 362 121.8 7.80 0.18 2.08 9152 96 355.5 13.00 0.55 3.30 9159 382 147.5 11.49 0.31 3.71 At the western limits: Hole Depth Width Zinc Copper Lead (ft.) (ft.) (%) (%) (%) 9036 281 3.4 4.15 0.33 1.47 9038 179 14.5 18.86 0.22 1.05 9164 1220 3.0 3.16 0.04 0.05 1250 2.5 1.10 0.04 0.62 At the eastern limits: Hole Depth Width Zinc Copper Lead (ft.) (ft.) (%) (%) (%) 9162 249 9.0 4.17 0.03 1.12 273 10.0 2.74 0.05 1.01 438 5.0 4.45 0.03 0.05 9165 144 2.5 8.53 0.43 3.76 158 6.1 3.53 0.07 0.88 171 5.0 0.28 0.01 0.19