Cominco leases Mesaba copper-nickel deposit (June 14, 2001)

Vancouver — Cominco (CLT-T) has acquired the rights to a large undeveloped copper-nickel deposit in northern Minnesota from Longyear Mesaba and the State of Minnesota.

Cominco says the Mesaba deposit contains an estimated resource of 700 million tonnes grading 0.46% copper and 0.12% nickel. The deposit is accessible by open pit. A further 300 million tonnes of higher-grade resources can be mined underground. The deposit also contains cobalt, platinum group and precious metals.

The 2,344-acre site was extensively explored by other mining companies in the ’70s and ’80s. No development ensued, due to the complexity of the ore and low metal prices. As part of the project studies, Cominco will be evaluating the use of its proprietary Cominco Engineering Services (CESL) copper-nickel hydrometallurgical refining process.

The CESL process involves the extraction of copper, nickel and other metals from concentrates and ores based on patented applications of pressure leaching, solvent extraction and electrowinning. It does not produce significant gas emissions or any toxic waste.

Cominco has taken a 5,000-tonne bulk sample of the Mesaba ore and is processing it to produce concentrate for testing in the CESL pilot plant in Vancouver.

The major believes that the success of the operation will depend on utilizing the existing infrastructure and new technology synergistically.

Cominco has pulled John Key from his position as general manager at the Red Dog mine in Alaska and assigned him to the same job at Mesaba. Bob Jacko has been appointed general manager at Red Dog.