Noranda Mining & Exploration (NM&E), a wholly owned subsidiary of Noranda (TSE), will spend $84 million to develop the Bell Allard zinc-copper deposit, near the company’s Matagami division in northwestern Quebec.
This will be the eighth deposit put into production in the area. Two mines, Norita-East and Isle-Dieu, are expected to close in 1996 and 1997, respectively. With the decision to proceed with the new project, NM&E expects the division to continue operating at least until 2002.
Construction of surface facilities will begin in the spring, to be followed by shaft-sinking. The shaft should be completed by the end of 1996, with underground mine development to get under way the following year. Startup is slated for the summer of 1998.
The deposit exists at an average depth of 1,000 metres, and reserves are estimated at 3.2 million tonnes grading 13.77% zinc and 1.5% copper, plus 43.45 grams silver and 0.763 grams gold per tonne.
The Bell Allard deposit will be mined at a daily rate of 2,000 tonnes for about 4.5 years. Most of the processed rock will be sent back underground, thereby reducing the impact on the local environment and the need for a tailings disposal site.
The new mine, together with the Matagami processing facilities, is expected to employ 230 people during the development stage and more than 200 when production starts.
In addition to going ahead with development, the company plans to continue exploring the area surrounding Bell Allard. During the next three years, NM&E will drill several preliminary exploration targets to determine their extent and commercial potential. It will also search for other low-volume, high-grade zinc deposits in and around the region. The 1995 budget for doing so is $2 million.
In other developments, improved product prices and a weaker Canadian dollar helped the company post strong fourth-quarter and year-end results. For the quarter, Noranda earned $127 million (or 57 cents per share), compared with $1 million (or a loss of 1 cents per share) in same period in 1993.
As of Dec. 31, 1994, Noranda had earned $330 million (or $1.45 per share) after preferred share dividends. This compares with a loss of $37 million (or 41 cents per share) over the same period in 1993.
Year-end earnings for Noranda’s Mining and Metals group soared to $229 million in 1994, compared with $21 million in 1993. The dramatic rise was attributed to higher prices for copper, aluminum, nickel and zinc (in terms of the Canadian dollar).
The group also had increased production of refined nickel and copper, as well as mined production of zinc. Mined production of copper, however, slipped. In 1995, several major projects are expected to start up or reach full production, the most notable being the Louvicourt base metal mine and Raglan nickel project, both in Quebec. Noranda holds a 60.9% interest in Novicourt (TSE), which holds a 45% interest in Louvicourt. The mine entered production last year and will officially open April 24. Noranda also holds a 46.4% interest in Falconbridge (TSE), which recently gave the go-ahead to the Raglan nickel project.
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