Noranda spending $20-m at Gaspe

For the second time in as many weeks, a unit of Noranda (TSE) is investing funds to develop a new ore deposit.

Noranda Mining & Exploration (NM&E) will spend $9.5 million over the next two years to develop the E-34 copper deposit at the Gaspe mine near Murdochville, Que. The E-34 is an extension of the E-29 orebody, which is currently being mined. The additional ore will extend the life of the underground mine to mid-1999.

Minable reserves at the E-34 are estimated to exceed 1 million tonnes containing 33,400 tonnes of copper. In addition to developing the E-34 this year, NM&E will conduct a feasibility study on expanding this orebody. Production from the E-34 is to start in early 1997.

In addition, NM&E will spend $10.5 million to increase by 30% the capacity of the smelter near Murdochville. A new concentrate drying and injection system will boost annual capacity to 110,000 from 85,000 tonnes of copper concentrate. The system, expected to be operational in early 1996, will also increase the recovery of sulphur and reduce dust emissions by 50%. The smelter expansion is part of a modification program aimed at ensuring the long-term viability of the custom milling facility once ore is depleted.