Vancouver — FNX Mining (FNX-T, FNXMF-o) has defined an initial resource for what will likely be the next production target at its Levack mine complex, about 30 km northwest of Sudbury, Ont.
Resources at the Levack Footwall Deposit (LFD) stand at 754,000 indicated tonnes grading 8.09% copper, 1.26% nickel and 7.76 grams combined platinum, palladium and gold per tonne.
FNX calls it an “initial” resource as it only includes a 76-metre vertical cut through what is so far a mineralized envelope 762 metres downplunge, 305 metres along strike, 61 metres wide and open at depth.
Terry MacGibbon, chairman and CEO of FNX, said in a statement: “Today we are able to provide the first, albeit conservative and limited, indicated mineral resource estimate to support our significant expectations and projections for the LFD.”
Those expectations include bringing the LFD to limited production in 2009 and ramping up to full production in 2010.
FNX accessed the LFD deposit from the 2,650-level of the Levack mine and a 4,000-level drift from Xstrata’s (XSRAF-O, XTA-l) Craig mine.
Currently FNX’s ore stream comes from three mines: the Levack complex, which includes the Levack and McCreedy West mines, and the Podolsky mine, which achieved commercial production in January 2008.
FNX says the LFD mirrors other Sudbury-area footwall deposits, such as its own McCreedy West 700 complex and the Podolsky 2000, where chalcopyrite-rich, massive sulphide veins can be mere centimetres to more than 6 metres wide.
FNX is also in preproduction development above the LFD in the Rob deposit, where ramp construction to the LFD has so far reached the 3,055-level, the company says.
In the most recent quarter ending June 30, FNX sold about 353,000 tonnes of ore at $213 per tonne with cash operating costs coming in at $145 per tonne.
On news of the resource estimate, FNX’s share price dropped 30 to close at $11.90. The company has about 85 million shares issued.
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