Etruscan hopes to revive idle Thierry nickel mine

The former-producing Thierry copper-nickel mine at Pickle Lake, Ont., may soon have a new owner intent on reopening the operation. The mine reportedly has reserves of seven million tons grading 1.88% copper, 0.23% nickel and significant platinum group metal values remaining. Etruscan Enterprises (VSE) has a letter of intent to purchase the property from Union Miniere Exploration & Mining (Umex) of Belgium for $400,000 down, another $400,000 at the end of the year and a 3% net smelter royalty.

In the early 1970s, Umex spent $104 million developing a 4,000- ton-per-day mill but could not produce sufficient ore to keep it running at capacity.

Between 1976 and 1982, about 4.9 million tons of mineralization from the underground mine and an open pit were extracted and milled by Umex.

Millhead grades were reportedly 1.2% copper but proved uneconomic when metal prices fell during the recession in 1981-82. The 4,000-ton-per-day operation was closed, putting 170 out of work.

Since then, Umex has sold the underground crusher, the secondary crusher and some flotation cells from the mill.

But only recently has the company actively shopped the property around. In January, the company sold all of its Canadian exploration properties to Major General Resources (VSE) for $500,000 cash and various royalty interests (T.N.M., Jan. 29/90).

Watts, Griffis and McOuat brought Etruscan and Umex together to make the Thierry mine deal.

Etruscan is controlled by NovaGold Resources (TSE).

Potential for reopening the mine lies with another, much larger, low- grade deposit nearby, according to William Young, vice-president and director of NovaGold.

Containing an estimated 55 million tons, this deposit averages 0.31% copper and 0.1% nickel.

“We think there is potential to upgrade this material, using a heavy media separation technique similar to that being tested by NovaGold at the Mt. Pleasant tin property in New Brunswick,” Young says.

“We would be looking to supply 2,000 tons of this material to the mill and 2,000 tons from underground per day,” he adds.

A feasibility study will be the first order of business once the deal is closed.

Etruscan recently raised $1.5 million in a private placement in Geneva.