RFC increases reserves at Pend Oreille zinc project

RFC Resource Finance (TSE) says it will soon be in a position to make a production decision at the old Pend Oreille zinc mine project, 55 miles south of Trail, B.C. All the necessary field studies have been completed and even though a feasibility study won’t be completed until the end of March, President Douglas Nicholson expects the mine to be up and running by 1991.

That prediction is based on data reviewed so far and results of an 51,592-ft. underground exploration program that is targeting the entire 4,200 ft. strike length of the Yellowhead zone, the lower of two mineralized strata mined before the operation closed down in 1977.

Operated by Cominco Engineering Services, the program has increased preliminary estimates of reserves to 3.7 million tons of grade 8.8% zinc and 1.6% lead over a 3,500-ft. strike length. The average thickness of the zone is 17 ft. The reserves increase is based on a cutoff grade of 5% zinc over a 9-ft. thickness.

Before the increase was announced, preliminary estimates of reserves stood at three million tons grading 9.8% zinc and 1.9% lead.

“Although the ore-grade mineralization throughout the test area was found to be entirely continuous, some fault offsetting is apparent,” said Nicholson. “Previous data had suggested the presence of a series of unconnected lenses.”

According to Nicholson, the potential for a major reserve expansion is clearly indicated 500 ft. from the northern limits of available underground drill stations, where the orebody swells to thicknesses in excess of 40 ft. “In that area, the grades run as high as 10% zinc and 2% lead,” he said.

While further examination of this larger high-grade zone will be deferred until it can be explored from underground, RFC Finance is encouraged by a surface hole intercept 1,500 ft. north of the current test area. RFC Finance, a 44% owned affiliate of Kerr Addison Mines (TSE), has the option to earn a 100% stake in the Pend Oreille project.

“As tonnage is increasing by more than 1,000 tons per foot of advance, the previously reported 6-million-ton indicated reserve base appears increasingly realistic,” said Nicholson.