Cameco to drill Hanson Lake

Besides testing the strike and depth extension of the McIlvenna Bay deposit, the proposed 75,000-ft drill program will provide data for engineering and mining purposes. Detailed drilling is expected to resume by mid-June.

Cameco is presently conducting a pre-feasibility study on the McIlvenna Bay deposit which will include preliminary engineering, metallurgical studies, and a recalculation of reserves to the 2,950-ft level.

Three sulphide lenses have been identified so far and the reserve potential is thought to be more than 7.5 million tons grading 7% zinc, 1.1% copper, 1.0 oz silver, and 0.02 oz gold per ton. The deposit is still open below the 2,950-ft horizon.

Since January 1988, some 57,250 ft of drilling has been completed on the McIlvenna Bay zone; 39 holes tested the deposit on 330-ft centres and economic grades of zinc and copper were reported in all holes over mining widths.

Cameco (created by a merger of Eldorado Nuclear and the Saskatchewan Mining and Development Corp.) is operator for the Hanson Lake property with a 50% interest. Esso Minerals Canada and Trimin hold 25.5% and 24.5% respectively. Cameco and Trimin have elected to purchase Esso’s interest but the deal won’t be finalized until August.

The purchase requires a cash payment of $2.1 million of which Trimin’s share is $700,000. This would raise the company’s interest to 32.9%. Several financing avenues are being considered by the company including a convertible debenture, said Randy Turner, Trimin’s president.

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