Study shows precious metals distribution

Through chemical analysis, drill core samples with mineralized lengths ranging from 28 to 90 ft were found to contain elevated amounts of palladium, platinum, gold and silver in varying amounts, in addition to the previously known copper and nickel.

The value of the precious metals shown by the new analyses increases the value of the material represented by the core samples by 10 to 25% over the copper/nickel value.

Using prior research from the institute which indicated a strong correlation between high copper content and the presence of other precious metals, such as palladium and platinum, the NRRI began to examine drill cores provided by the M. A. Hanna Company. The drill cores are the result of Hanna’s drilling during copper/nickel exploration in the late 1960s and early 1970s. At that time interest in mineable deposits of copper and nickel was high in Minnesota. Hanna, based in Cleveland, owns and operates the Hanna Research Center in Nashwauk, Minn., and manages the National Steel Pellet Company in Keewatin, Minn.

Although Hanna retains ownership of the cores, to the best of NRRI’s knowledge there are no leases currently known to be held on the site from which they were taken, which is located in the Superior National Forest.

“Copper/nickel is an existing resource in Minnesota and if additional metal value could be added to the copper/nickel, these deposits may become more economical to mine,” Steve Hauck senior scientist said. The potential value of metals in the core, based on the approximate current market value, i s high, according to Thys Johnson, director of NRRI’s Center for Applied Research and Technology Development. Metal values per ton range from $48.67(US) to $73.69 for the four drill cores tested. However, the price per ton increases when the best intervals, or section, of the drill cores were considered separately, and range from $75.17 to $99.94 per ton.

“But whether these values are entirely recoverable is open to question,” Johnson said.

“The find is particularly exciting because it is close to the surface, which would facilitate relatively inexpensive open pit mining,” Hauck said. Even more importantly, the occurrence of the metals was similar in four of the drill holes taken from the same area and was of significant thickness (90 mineralized feet) in each of the four drill holes.

“We’ve never seen reported such a number of drill holes within one area with this level of mineralization,” Johnson said.

Hauck and Johnson both stress that their results don’t necessarily mean that establishment of a multi- metal mining operation on the site is imminent, but a significant potential does exist for a small, surface operation.

“We have something extremely interesting here that needs more investigation and study by industry and/or the Institute,” Johnson said. “This is exciting because of the better ore grades and a current higher market for the metals.

“However, it remains questionable whether or not the material can be effectively mined or the metal values are recoverable during mineral processing or that there are sufficient grade and tons present to support a mining operation.”

In addition, the exact mineralogy, or mineral forms, of the find has yet to be determined. For example, although it is known that palladium is present, it is unknown if it occurs in the form of an alloy, sulphide or oxide, which will determine what is recoverable and therefore affect the market value of the potential ore.

Ongoing testing at the institute is expected to provide more detailed information about the exact mineralogy, which will determine the extent to which the precious metals are recoverable.

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