Recent developments at the Izok Lake property in the Northwest Territories exemplify the impact a change of ownership can have on a dormant exploration project.
Discovered by TexasGulf in 1974 and passed on to Falconbridge in the 1980s, the isolated base metal deposit sat unexplored for six years before being sold to Minnova (TSE) in 1991.
The Noranda (TSE) affiliate moved quickly to outline about 15 million tonnes of copper-zinc reserves and within six months, had piqued the interest of international player Metall Mining (TSE).
Metall later secured control of both Minnova and Izok Lake and is now investigating the feasibility of spending $350 million to build a mining complex.
Similar in terms of mineralization and size and considerably more accessible, the Grevet project north of Val d’Or, Que., may be headed for the same fate. Under a recent change in project operator VSM Exploration’s (TSE) ownership, Cambior (TSE) has acquired control of Grevet from Placer Dome (TSE) (T.N.M., July 13/92). After more than a year on the shelf, Grevet is slated for further exploration.
“VSM was clearly not a good fit for Placer given Grevet’s size relative to the requirements of Placer, and as a result, the project was left to stagnate,” says Paul Carmel of Levesque Beaubien Geoffrion in a recent report. “Cambior, on the other hand, is appearing to be far more aggressive toward Grevet and has laid out an ambitious work plan.”
By the end of this month, Cambior is expected to begin an underground exploration program, including shaft-sinking and development on three levels.
“The program has not yet been approved by the board of directors,” said Jean Boissonnault, vice-president of exploration for the gold producer. “But it will include significant underground exploration.”
Grevet contains three separate deposits with combined minable reserves of 11.5 million tonnes grading 9.08% zinc, 0.47% copper and 36 grams silver per tonne. The reserve estimate is based on metal prices of 54 cents per lb. for zinc and US$1 per lb. for copper.
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