New overseas mines give boost to Metall

With two new mines operating at or near commercial production levels and with development work under way at several others, Metall Mining (TSE) expects to continue growing in 1995.

Last fall, the Toronto-based company commenced production at the Bougrine zinc mine in Tunisia, North Africa, and the Cayeli copper-zinc operation in Turkey.

Initially, the Bougrine experienced difficulties related to mine development and mill recoveries, but these have been largely resolved. It reached full production in the fourth quarter of 1994 and processed 120,000 tonnes of ore last year. In 1995, it is expected to process 300,000 tonnes of ore, from which 34,700 tonnes of zinc-in-concentrate will be derived at a cash cost of US45 cents per lb.

Production at Cayeli last year amounted to 68,000 tonnes of ore at a cash cost for copper-in-concentrate of US68 cents per lb. This year’s output is expected to reach 17,500 tonnes at a cash cost of US55 cents, as well as 38,000 tonnes of zinc-in-concentrate at an undisclosed cost. Underground exploration is continuing at the mine, where drilling has added 2 million tonnes of reserves, raising the proven and probable figure to 12.7 million tonnes averaging 4.4% copper and 6.2% zinc. And in the possible category, another 4.1 million tonnes have been outlined. The end result of these increases is that the mine life has jumped to 21 from 15 years. Meanwhile, exploration and development are under way at some of Metall’s other operations, including the Winston Lake zinc-copper mine in northwestern Ontario, where a 2.5-km-long exploration drift is nearing completion. Metall has drilled 14 surface drill holes and outlined possible reserves from the upper and lower zones. These total 1.25 million tonnes averaging 1% copper and 17% zinc, plus 44 grams silver per tonne.

Once completed, the drift will extend from the Main deposit to the upper zone of the Pick Lake deposit, and 12 holes will be drilled to confirm the reserve figure.

The drilling will be followed by a feasibility study, which should be completed by mid-year. If it proves positive, Winston Lake could see its mine life increase by five years.

Farther south, at the Copper Range complex in Michigan, faulting has interrupted mining operations within the Southwest mine and, as a result, conventional mining there will be discontinued by year-end; activity will instead shift to the North mine. Reserves at Copper Range have dropped to 139 million tonnes averaging 1.04% copper. The decrease in reserves will, however, have little effect on the 25-year mine plan.

Metall will further investigate the northern extension of the North mine where, previously, five of six drill holes intersected ore-grade mineralization.

Other developments at Copper Range include the temporary closure of the smelting facility last month and the preparation of a bankable feasibility study on solution mining. Also, permit applications have been filed for the purpose of modifying the smelter and carrying out solution mining. The company, in the meantime, will continue construction at its Troilus gold property in northwestern Quebec. The total cost of bringing the project to production is estimated to be $157 million.

Meanwhile, Metall has instituted a shareholder rights protection plan (or “poison pill”) which will be submitted for ratification by shareholders at the May 4 annual meeting.