New York-listed Asarco plans to develop a high-grade copper mine below its Mission open pit complex in Sahuarita, Ariz.
About US$10 million will be spent developing the underground mine, which hosts an estimated 5.1 million tons averaging 2.07% copper. The deposit lies 400 ft. below the open-pit workings.
Two declines will be driven from within the pit to gain access to the top and bottom of the deposit. Production from the new mine is expected to begin in early 1996 and last about five years. As a result, copper production at the Mission mine will increase by about 14,000 tons annually. In 1993, the mine produced 117,900 tons of copper.
In another major development, Asarco has joined forces with Coeur d’Alene Mines (NYSE) to form a new company known as Silver Resources. Its principal assets will include two past-producing silver mines and an advanced-stage exploration property.
The low silver price prevented the Coeur and Galena mines, near Wallace, Idaho, from operating during the past three years. When the shutdown occurred, Galena had reserves of 951,000 tons averaging 15.07 oz. per ton silver, while the Coeur contained 360,000 tons averaging 17.32 oz. Historical production from the two mines exceeded 160 million oz. The company also holds the adjoining Calady silver property, which has been explored via a 5,000-ft.-deep shaft.
While the mines have yet to reopen, Coeur d’Alene Chairman Dennis Wheeler says the formation of the new company represents “optimism over the future of silver.”
If and when operations resume, almost US$25 million will be required for exploration and development, most of which will be spent at Galena. Asarco has been managing the Galena and Coeur properties under a lease agreement with Coeur d’Alene. Both companies will hold a 50% equity interest in Silver Resources.
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