Vancouver-based Cominco Resources International (TSE) set out to explore and acquire mineral projects in geologically prospective terranes around the world. This year, it plans to drill at least 35 foreign properties in various countries, including Mexico, Chile, Turkey, Guatemala and the U.S.
The programs are valued at about $18 million, including $6 million of the company’s own funds, with work directed mainly toward the discovery of copper and gold.
One of the most advanced projects is Cerattepe, in the northeastern Turkish province of Artvin. A high-grade copper sulphide deposit was the original target, but the emphasis has since shifted to development of a precious metal zone which lies above the copper deposit.
Definition drilling has more than doubled the gold-silver geological resource of the gossan zone, now estimated at 265,000 oz. gold and 10 million oz. silver.
Preliminary open-pit planning is focused on a zone with a probable resource of 1.6 million tonnes grading 5.2 grams gold and 200 grams silver per tonne. A near-surface, higher-grade zone (regarded as a starter pit) will be available for initial mining.
Preliminary metallurgical tests show recoveries of more than 90% for gold and 50-60% for silver. A feasibility study to define the economics of gold and silver production is planned for early this year.
Meanwhile, Cominco Resources has signed a financing agreement that is expected to lead to early development of the Mariquita copper deposit in northwestern Mexico. An unnamed Mexican partner will contribute up to US$30 million toward construction and end up holding a 51% interest in the project. Cominco Resources will hold the remainder.
Plans call for the project to be developed as an open-pit, heap-leach, solvent extraction-electrowinning (SX-EW) operation, with yearly production in the order of 15,000 tonnes of highly pure copper cathode. Farther south, in Chile, Cominco Resources holds a 9% interest in Quebrada Blanca, a large SX-EW copper project being readied for production by Teck and Cominco Ltd.
The three companies are also partners in an exploration joint venture in the South American country, where large porphyry copper deposits are the target. More than 60 properties have been acquired, several of which are scheduled to be drilled this year.
A lateritic-type nickel deposit is the target in Guatemala, where test-pitting on Cominco Resources’ 50%-owned property outlined a probable resource of 2.1 million tonnes grading 2.1% nickel. The deposit is similar to ore that had been treated at the company’s 50%-owned Glenbrook nickel smelter in Oregon. (That smelter has been closed since summer.)
On the financial front, Cominco Resources lost $17.8 million in 1993, compared with a loss of $9.3 million in the previous year.
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