Flin Flon – Snow Lake leads exploration in Manitoba

Hudson Bay Mining & Smelting, formed in 1927 to mine the rich Flin Flon zinc-copper deposit, remains the most active company in the camp. Eight mines are under its operational control.

Major capital expenditures are being made at Chisel Lake, where a $20-million crown pillar recovery project is under way. The Chisel Lake crown pillar will be mined via an open pit. Reserves total 1.2 million tons grading 10.5% zinc with a good gold credit per ton. According to the Manitoba Depart. of Energy and Mines, a deep discovery at the Chisel Lake mine could add another two million tons of ore to the operation.

At the 8,000-ton-per-day Ruttan copper mine, Hudson Bay is conducting exploration on two newly discovered deposits. The finds could add three years to Ruttan’s life.

Immediately north of the city of Flin Flon, Hudson Bay and partner Manitoba Mineral Resources) the provincial mining agency) are preparing the Callinan zinc-copper-gold deposit for production by the fourth quarter of this year.

The $18-million project will result in reserves of 2.6 million tons grading 4% zinc, 1.5% copper, 0.055 oz gold and 0.66 oz silver per ton. Mining will be via levels driven from the main Flin Flon mine, 3,000 ft south of the Callinan deposit. According to Hudson Bay, the exploration potential at Callinan remains excellent.

Hudson Bay also has major capital commitments at its new Namew Lake high-grade nickel mine and at the Trout Lake zinc-copper mine, the latter being in the final stages of a major $20-million shaft sinking program. At Namew, south of Flin Flon, Hudson Bay and partner Outokumpu Mines are expecting to produce 68,000 tons of nickel and 13,500 tons of copper concentrates per year from the 525,000- ton-per-year mining and milling operation. Capital costs have exceeded $70 million.

Also near Snow Lake, two gold projects with short-term production possibilities are under way. At the formerly producing Nor-Acme gold mine, High River Resources (TSE) and partner Inco Gold are working to verify geological reserves and find additional reserves. Work completed by High River has outlined reserves, in all categories, of 4.9 million tons grading 0.145 oz gold per ton.

Inco Gold, the operator, plans to drive two crosscuts on the 542-m level and complete 20,000-ft of drilling. This work will test for additional reserves at depth. Inco can earn a 50% interest in the property by funding the project to production.

Another operator, Sikaman Resources (TSE), is planning a $14- million gold tailings recovery operation on the Nor-Acme’s tailings dump. The tailings consist of 274,000 tons grading 0.38 oz gold per ton. However, high arsenic content has precluded the economic recovery of gold in the past. Sikaman is planning to use a new metallurgical process to liberate gold.

Silver Hart Resources (VSE) is also active with a gold property adjacent to the Nor-Acme mine site. Reserves at Silver Hart’s No 3 deposit total 560,000 tons grading 0.279 oz gold. Reserves in the nearby Birch zone total 247,000 tons grading 0.238 oz gold.

Southwest of Sherridon, partners Golden Range Resources (TSE) and Mingold Resources are exploring the Hudvam polymetallic deposit. Reserves total 284,198 tons grading 0.067 oz gold, 1.15% copper and 2.3% zinc in the No 3 zone. Another 239,569 tons grading 0.2 oz gold, 2.14% copper and 2.75% zinc are found in the No 1C zone. Combined drill proven, probable and possible reserves total 815,000 tons grading 0.116 oz gold, 0.4 oz silver, 1.36% copper and 1.9% zinc.

Also near Flin Flon, Westfield Resources (TSE) and partner Goldbrae Developments (VSE) have outlined a geological reserve of 200,000 tons of economic-grading copper, zinc, silver and gold mineralization. Some of the better results came in hole 41 which intersected 64.3 ft assaying 1.72% copper, 14.55% zinc, 0.09 oz gold and 1.71 oz silver.

Gold and polymetallic exploration is also active in the Island Lake and Gods Lake greenstone belts, near the Ontario border. Near High Rock Island, partners Bighorn Development (VSE) and Wydmar Development Corp. (VSE) are considering a 200-ton-per-day mining and milling operation. A 25-ton test mill has been erected on-site. Gold mineralization is hosted in a zone striking for 1,700 ft, averaging 6.1 ft in width and dipping to a depth of 830 ft.

Westmin Resources (TSE) is the operator of the Little Stull project for partners Tanqueray Resources (ASE) and Estaurum Mines (ASE). Drilling has outlined a large mineralized structure that hosts two higher grading subzones which strike for 500 ft and 2,300 ft.

In the Lynn Lake-Leaf Rapids greenstone belt, most exploration activity is focusing on gold. A considerable amount of exploration has been completed by LynnGold Resources (TSE) near its operating MacLellan gold mine. This year the mine is expected to produce 70,000 oz of gold. Reserves in the main zone stand at 1.1 million tons grading 0.19 oz gold. East zone reserves total 194,000 tons of a similar grade.

The MacLellan property also protects several other deposits. Immediately east of the mine, the Nisku deposit is being mined at a rate of 200 tons per day. Reserves are estimated at 206,000 tons grading 0.19 oz gold. Another 594,000 tons are hosted in the nearby Rainbow deposit. The grade averages 0.25 oz gold. At Dot Lake, one mile west of the mine, geological reserves of 1.37 million tons grading 0.117 oz gold have been defined.

Further to the east, LynnGold and partner Trans America Industries (VSE) are drilling off a new gold discovery made last year. Known as the Burnt Timber property, open pit reserves of 1.1 million tons grading 0.111 oz gold have been developed. These are within trucking distance of the MacLellan mill. A prefeasibility study is in progress.

Manitoba Mineral Resources most advanced gold project is at Farley Lake, east of Lynn Lake. The deposit hosts reserves of 1.4 million tons grading 0.2 oz gold. A portion of these reserves are amenable to open pit mining. Mingold is a partner in the project.

Balcor Resources (VSE) has also outlined a respectable reserve at its Lasthope gold property. Tonnage is estimated at 596,000 tons grading 0.24 oz gold. This includes a higher grading core of 105,500 tons grading 0.58 oz gold to a depth of 1,200 ft.

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