Silver production a go at Hellens- Eplett mine

Way back in late 1979, Toronto- listed Silverside Resources started working a high grade silver prospect in the famed Cobalt area of Ontario. Now eight years and about $5.5 million later, the company and its joint-venture partner, International Platinum Corp., have said yes to production go-ahead.

“We’re delighted,” Silverside President Leith Hellens tells The Northern Miner. And well he should be.

With at least 500,000 oz of silver already confirmed by limited underground work in five veins in the immediate vicinity of the faces of the development drift, the Hellens-Eplett mine is slated to go into full production this July at an extremely healthy rate of 3,000 oz of the white metal per day.

And with silver prices finally looking sexy again at about $12(C) per oz, and operating costs at the mine estimated to run about $4(C), the profit line is expected to be in equally fine health.

Cash flows could be further enhanced, says Mr Hellens. Preliminary tests indicate that the cobalt metal contained in the ore could be extracted as a byproduct. It is still too early to put a figure on the concentrations of cobalt in the veins as testing is still going on, says Mr Hellens.

William Eplett, president of International Platinum, the former Silver Lake Resources which became involved in the project back in 1984, says: “This production decision means a whole new resurgence in the Cobalt area and we’re glad to be a leader in it.” The decision takes on even greater meaning, says Mr Eplett, considering that both he and Mr Hellens were born and raised in the Cobalt area.

The 13-claim Hellens-Eplett find was missed during the previous rushes in the legendary Cobalt silver camp for two reasons. A heavy clay overburden, ranging up to 200 ft thick and covering most of the property was the main holdback to exploration. As well, the property hosted no old workings despite its proximity to no less than five former producers.

But what was known was that the property encompassed favorable geology — a dome-shaped structure and Cobalt series sediments — conditions long regarded as favorable in that famed old camp, which has yielded more than 750 million oz of silver since its discovery in 1905.

And so, as was reported in this paper back in 1981, Mr Hellens began an intensive exploration program, using “new geophysical and exploration techniques.” (N.M., Jan 22/81). And it looks as if this work has paid off.

About $5.5 million has been spent on the project to date, including a 3,000 ft decline ramp from which detailed drilling and sampling has been carried out on six separate veins, as well as limited drifting and raising. A 690-ton composite bulk sample from this work averaged 26 oz silver per ton, while the development muck itself has averaged 34 oz silver.

As well, a 300-ft vertical raise has been completed through to surface. It has been timbered for a manway and hoisting compartment. A small headframe has been erected which will be used to hoist all ore and waste rock as well as serving both as a ventilation shaft and escape way. Miners, supplies and materials, however, will enter and exit via the rampway.

A modular mill has also been built, though the concrete foundations still must be poured, says Mr Hellens. The joint venture is purchasing about 440 acres surrounding the mine site to accomodate the mill and the tailings pond. It’s estimated another $400,000 will be spent to bring the mine into full production.

All work to date has been concentrated in the immediate discovery area which lies on the east side of what is known as the McKenzie fault. However, Mr Hellens says a $300,000 exploration program will start in the middle of this month and run to July, which will probe the west side of the fault where the ore-bearing comglomerate is thicker.

The plan, says Mr Hellens, is to drive about a 400-ft crosscut at about the 450-ft level right through the fault itself where a series of 2,500-ft holes will be drilled.