Treminco to buy Silvana mine

The agreement calls for Treminco to pay Dickenson $1 million, plus working capital reimbursements spread over an 8-month period.

According to Treminco, the Silvana mine generated an operating income (before depreciation and taxes) of $1.2 million and $1.9 million in 1988 and 1987 respec tively.

Proven and drill-indicated reserves at Silvana are reported as about 32,000 tons grading 12.9 oz silver, 5.1% zinc and 4.4% lead. But noting that S ilvana has operated for many years on limited proven reserves, Treminco Vice-President Bill Trenaman said potential to find additional reserves is “considered excellent. ” Treminco expects to close the acquisition by the end of October. It then

plans to begin a program to increase reserves and to further test the property.

The company said the acquisition represents a “significant step forward” towards its goal of becoming a significant producer. In July of this ye ar Treminco of ficially opened its 200-ton-per-day mill at its 100%-owned Ptarmigan mine.

With the two operations, Treminco expects to produce about 25,000 oz gold, 450,000 oz silver, 4.5 million lb zinc and 4.3 million lb lead each yea r. Before th e mill was built, Treminco trucked ore to nearby Giant Yellowknife Mines for cus tom milling.

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