Bonanza probing old Poirier mine

The program is being funded by a recent public offering of nearly 1.55 million Bonanza shares underwritten by Yorkton Securities of Toronto. With net proceeds of $635,000 in hand, Bonanza is probing the old Poirier property for near- surface extensions to ore zones mined during the 1970s.

The former Poirier mine was closed down by Rio Algom (TSE) in 1975 after it had produced some 4.5 million tons of 2.45% copper and about 750,000 tons of 11% zinc.

The reserves at closing were reported at 585,701 tons grading 10.61% zinc and 514,750 tons of 2.45% copper.

According to Bonanza, the mine ceased operations due to labor problems and low base metal prices.

The Poirier mill also treated copper ores at a rate of 700 tons per day from the former Joutel Copper Mines’ property located nearby. The Joutel mine produced more than 60 million lb of copper and 72 million lb of zinc between 1967 and 1975. Current owner of that property, Joutel Resources (TSE), is also reviewing the possibility of exploring for new reserves.

A re-evaluation of the Poirier property’s existing ore reserves is also under way, with initial efforts concentrated on in-situ zinc reserves located in the West zone, Bonanza said. An option agreement with Ressources Minieres Forbex (ME) gives Forbex the right to earn a 50% interest in the project by spending $3 million over three years. Most of the first $500,000 payment from Forbex has been received, said Bonanza President Gilles Fiset.

Bonanza has also expanded the property to the south and west, in order to cover possible strike extensions of the mineralized horizons on the main mining concession.

Shares of Bonanza have traded recently at around $1 on Ontario’s COATS market. The company’s major shareholder is affiliate Normetal Mining Exploration (ME) with an 18% interest. Fiset said Bonanza plans to seek listing on the Alberta Stock Exchange in the near future.

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