Lik zinc prospect in Alaska key part of Moneta’s plans

Junior Moneta Porcupine Mines (TSE) is starting 1991 with the acquisition of the Lik zinc deposit in northwestern Alaska and full financing of all its major Timmins-based exploration projects through joint venture and farm-in option agreements. President Charles Gryba says “The Lik deposit could become one of the top 20 zinc mines in the world, capable of supporting a 15-year, 1.2 million-ton-per-annum operation.”

In November, 1990, GCO Mineral’s 80% interest in the Lik zinc-lead-silver deposit, located about 12 miles northwest of Cominco’s (TSE) Red Dog lead-zinc mine, a 6,000-ton-per-day operation. Echo Bay Mines (TSE) retains a 20% interest in the Lik deposit which will be the second mine in the area.

Infrastructure includes a permanent drill camp, a 4,000-ft. airstrip, the Red Dog access road (after construction of a 12-13-mile extension), and port access 65 miles away.

During the 6-month option period in 1990, Moneta spent about $500,000 on compilation surveys, metallurgical testing and a 3-hole diamond drill program. The 300-ft. drill holes apparently confirmed grade and continuity of preliminary geological reserves on Lik north and south of 18.2 million tons grading 10.2% zinc, 3.3% lead, and 1.5 oz. silver per ton, at a cut-off grade of 7% combined lead-zinc.

Two thirds of the deposit are mineable by open pit, which includes the Lik south geological reserve of 13 million tons grading 10% zinc, 3.2% lead and 1.5 oz silver.

Up to 1986, GCO reportedly spent $20 million on extensive exploration, environmental and engineering work on the Lik deposit. Moneta is looking for $180 million and a joint venture partner to bring the project into production over the next four years. Most of the approximately $800,000 raised in private placements in 1990 was directed to the Lik deposit.

For the past three years, Moneta has pursued an aggressive ground acquisition policy in the Timmins area and now owns 802 gold and base-metal claims situated on or near the Destor-Porcupine fault zone (DPFZ).

Independence Mining, a subsidiary of Luxembourg-based Minorco is currently earning a 50% interest in Moneta’s wholly owned Michaud twp. property and 50%-owned Nahanni Option by spending $4 million on exploration over five years. Independence can also earn an additional 10% by commissioning a feasibility study on the property.

Sixty miles of line cutting have been completed and geophysical surveys continue; a winter diamond drilling program is planned for the near future.

Moneta owns 100% of the 52-claim group in Michaud twp. and 50% of the 86 Nahanni claims. According to Moneta, this stratigic claim group covers five miles of strike length on the DPFZ.

In 1989, a major summer trenching and 20,000 ft.-follow-up drill program was completed by Moneta on the Michaud and Nahanni claims. Drilling indicated an apparent lack of strike-continuity in three previously-discovered gold zones.

Meanwhile, in another major option agreement, Saskatoon-based Cogema Canada, a uranium-gold producer, is earning a 50% interest in 45 patented claims in Tisdale and Deloro twps., which includes former gold producers, the Moneta, Mace and Kayorum mines. Cogema must spend $2.5 million on exploration over the period ending Dec. 31, 1994.

A $250,000 geophysical program is currently underway with $2.2 million in follow-up diamond drilling planned for 1992.

Centrally located in the Timmins Camp, the Cogem Option is between the Hollinger-McIntyre and Dome-Aunor-Delnite gold mines, where 30 million oz. and 18 million oz. of gold, respectively, were produced.

Depending on finances and negotiations with three potential custom mills in the Timmins camp, Moneta is hoping to start production on the Moneta gold tailings project in 1991, where 50,000 tons grading 0.22 oz. have been outlined. Metallurgical testing has confirmed a recovery rate of 55%.