Cominco Res. advances foreign projects

Ongoing programs in Turkey, Mexico and South America were highlights of this past year’s $19-million exploration program of Cominco Resources International (TSE).

A 50-50 joint venture program with parent Cominco (TSE) at the Saray gold property in northeastern Turkey confirmed a near-surface resource averaging 1 gram gold per tonne within a mineralized structure measuring 550 by 220 metres. Additional drilling will attempt to delineate the deposit, which remains open at depth and to the west.

Nearby and in the same geological setting as Saray is the Alintepe property, where sampling along a topographic ridge returned evidence of two gold-bearing zones 800 metres apart. Eleven chip samples from a 150-metre-length exposure averaged 4.5 grams while 10 chip samples from the second zone returned values of 1-20 grams over 4-10-metre lengths in an area measuring 50 by 150 metres. Drilling is under way.

At the Cerattepe project, also in Turkey, bulk sampling and drilling on the potentially open-pit gold-silver zone increased defined reserves to 300,000 oz. gold (a 12% increase) and 12 million oz. silver (a 20% increase). A prefeasibility study calls for open-pit mining of the precious metal zone and underground excavation of the underlying copper deposit, which contains 1.2 million tonnes grading 10% copper. Beginning in the new year, Cominco Resources will sink an exploration decline to the copper zone and, at the same time, carry out drilling in an effort to delineate both zones further. Permitting is under way in preparation for a production decision, and Cominco Resources has entered financing discussions with several institutions. Meanwhile, in Mexico’s Chihuahua state, sampling on the gold property known as El Pilar has returned values averaging 0.5 grams gold, and as high as 11 grams, from a silicified area measuring 500 by 300 metres. The project, which is a 50-50 joint venture with Cominco, will be subjected to drilling in 1995. A Mexican company, Minera Maria (owned 49% by Cominco Resources and 51% by Empresas Frisco), acquired the Mariquita copper project in northwestern Mexico from Cominco earlier this year. Envisaged is an open-pit, heap-leach operation that will produce 15,000 tonnes of cathode copper per year by means of solvent extraction-electrowinning. The deposit contains 43 million tonnes grading 0.46% copper. Empresas Frisco is responsible for arranging and guaranteeing financing of US$30 million for construction. Environmental permitting is expected to be completed by year-end, following which a production decision will be made.

Situated 5 km east of Mariquita is the Maria copper mine, owned 49% by Cominco Resources and 51% by Empresas Frisco. Production of 59,900 tonnes during the third quarter averaged 2.7% copper and 0.36% molybdenum. Reserves are expected to be depleted by the second quarter of 1995.

At the Tarmatambo property in Peru, a 50-50 joint-venture exploration program with Cominco returned zinc mineralization from an ongoing drill program. The first hole intersected 37 metres of 9% zinc, including an interval grading 15% zinc over 18 metres. The follow-up hole, 100 metres to the north, failed to intersect mineralization.

Drilling continues on the Huilacollo gold property in southern Peru, where sampling identified a mineralized area 100 by 200 metres. Values averaged 2 grams and as high as 8 grams over 5 metres.

The Quebrada Blanca copper mine in northern Chile, in which Cominco Resources holds a 9% interest, is continuing its startup. During the third quarter, it produced 1,121 tonnes of cathode copper and is projected to produce 75,000 tonnes per year over a 14-year life.

On the financial front, Cominco Resources experienced a net loss of $4.1 million in the third quarter, compared with a loss of $5.1 million in the same period last year. The loss for mining and smelting operations was $1.1 million, compared with a loss of $2.5 million in the same quarter of 1993. The company has $35.8 million in working capital.