“We saw the acquisition as a means to increase cash flow, particularly in view of current base metal prices,” said Mike Muzylowski, president of Granges.
The Trout Lake mine has been an important production cornerstone and cash flow contributor for the company since production began in 1982. Back in 1976, while still a private company owned by Swedish interests, Granges discovered the Trout Lake deposit.
Last year the mine produced 31.5 million lb of copper, 61.7 million lb of zinc, 29,400 oz of gold and 225,700 oz of silver from 772,212 tons of ore mined. According to Granges, further increases in ore and metal production are planned for 1989. As of early January, the Trout Lake mine had proven and probable reserves of 6,291,300 tons grading 2.01% copper, 5.4% zinc, 0.044 oz gold and 0.34 oz silver per ton.
The development program includes the sinking of a new production shaft to a depth of 2,100 ft followed by lateral development from the deep level. The program began in 1987 and is expected to be completed in early 1990.
“Enough deep drilling has been done to indicate there is sufficient ore to justify this development work,” said Muzylowski, adding that the program is expected to add to current reserve figures.
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