Eastmain considers reopening Stratabound’s CNE

A deal between property holder Stratabound Minerals (AB-A) and Eastmain Resources (ER-T) could see mining resume at a small massive sulphide deposit in the Bathurst, N.B., mining camp.

The agreement gives Eastmain the right to update an existing feasibility study on the Captain North Extension (CNE) deposit, 40 km southwest of Bathurst. If the updated study is positive and permits are granted, Eastmain would finance a reopening of the CNE pit and come to an agreement with Noranda (NOR-T) to custom-mill CNE ore at the Brunswick No. 12 mill.

Under the agreement, Eastmain would also assume the financial and environmental obligations on the property, and Stratabound and Eastmain would split the net profits.

The CNE pit, which operated from 1990 to 1992, shipped ore to the Heath Steele mill, which is scheduled to close this month. There is some capacity at Brunswick No. 12, and Eastmain said early discussions with Noranda indicated the milling charges would be “competitive.”

CNE has a minable reserve of 75,000 tonnes in the open pit, grading 7.3% zinc, 2.6% lead and 89 grams silver per tonne. Millhead grades during the period CNE was mined proved to be higher than the reserve estimates, so Eastmain believes an updated feasibility study may show higher reserve grades.

CNE’s resource consists of two zones: a zinc-lead zone with 162,000 tonnes grading 7.8% zinc, 2.8% lead and 89 grams silver per tonne, and a copper zone with 31,000 tonnes grading 1.3% copper and 0.7 gram gold.

Meanwhile, in northwestern Ontario, Eastmain is testing the unexplored western extension of the Abitibi greenstone belt in a land package held with Quaterra Resources (SAF-T). The property covers several airborne magnetic and electromagnetic (EM) anomalies believed prospective for volcanogenic massive sulphide, ultramafic-hosted nickel and lode gold deposits. Quaterra can earn a half-interest in the project by spending $1.5 million over four years.

Work is already under way at the Nett River claim group, which covers a 27-km strike length of Archean greenstone terrain barely explored in the past. Work will include 200 km of line-cutting, ground magnetic and EM surveys to confirm the location and strength of bedrock EM conductors. A second-phase winter program will drill-test between 10 and 15 of the best targets. These claims are prospective for nickel deposits, massive sulphide deposits and possibly gold deposits in iron formation.

A deep-penetrating surface EM survey will attempt to define targets at the Kesagami block, while winter programs of linecutting and geophysics are planned for the North French and Chabbie Lake blocks.