Manitoba Minerals busy on 51 bets

The Farley Lake project was one of 51 exploration projects in which MMR participated last year. Total province-wide expenditures involving the provincial crown corporation amounted to $7.6 million, of which MMR contributed 53%. The balance was supplied by the private sector.

The company starts exploration projects that are wholly-owned in the early stages with the expectation they will attract private sector participation. As well, MMR participates in promising joint venture projects proposed by private sector mining companies. All but five of the 1.73 million issued shares of MMR are held by the Manitoba government.

Last year, the company’s share of ore produced from the Trout Lake base metal mine reached a record level of 208,500 tons grading 2.16% copper, 4.57% zinc, along with gold and silver credits. Cash operating costs at the underground mine rose to $36.54 per ton compared with $29.22 per ton in 1987. Increased unit operating costs reflected higher wages and a metal price bonus paid to employees, MMR said.

Over the past year, MMR made option agreements with Homestake Mineral Development Co. on claims at Elbow Lake near Flin Flon, and with Minnova Inc. (TSE) on the Don Jon lease, also located near Flin Flon.

An agreement was negotiated with Mingold Resources making that company operator for certain properties around the Farley Lake gold deposits. Mingold was also responsible for construction of a 15-km access road and bridge at Farley Lake as well a bulk sampling work. A production decision on the project is expected soon. Reserves were last reported at 1.43 million tonnes grading 6.34 grams per tonne gold.

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