Cominco plans Snip startup Prime holds 40% interest

The go-ahead to develop the Snip gold deposit north of Stewart, B.C., has been given by operator and 60% owner Cominco (TSE). The balance of the project is owned by Prime Resources Group (VSE). Approval in principle for the project was obtained from the Government of British Columbia earlier this year and construction is scheduled to be completed in late 1990.

Initial production of gold is expected by January, 1991. At full operation, production will reach 330 tons per day with annual gold output exceeding 93,000 oz. per year. Operating costs are expected to be below US$200 per oz.

Cominco estimates that the capital cost of the project will be in the order of $65 million and bases its plans on a diluted ore reserve of 1.03 million tons grading 0.87 oz. gold per ton plus minor silver and copper values.

Gold will be produced in a sulphide flotation concentrate and from a gravity separation circuit.

Cominco plans to move supplies to the project by hovercraft from Wrangell, Alaska, until road access is completed down the Iskut Valley. The Government of British Columbia recently announced plans to help fund a road into the area.

With a 45-man crew now on the property preparing building sites for the coming program, the construction workforce is expected to peak at 130, while the permanent operation will employ 150 people.