Green Creek explores new ground

The operators of the Greens Creek polymetallic mine, in southeastern Alaska, have resumed exploration drilling following a brief hiatus.

Over the past year, Kennecott Minerals, a division of the mine’s 70.3%-owner, London-based Rio Tinto (RTP-N), performed 15,000 ft. of diamond drilling. Kennecott and its joint-venture partner, Hecla Mining (HL-N), which owns 29.7% of the underground mine, do not expect the drilling to add to this year’s reserves.

The property consists of 7,500 acres at the northern end of Admiralty Island, near Juneau.

Initial exploration, in 1999, consisted of mapping, sampling and geophysics, followed by drilling this year.

Most of the drilling was performed at Cub Creek, Killer Creek, Lower Zinc Creek, and the northeastern tip of the island. Admiralty Island is a national monument with one of the largest populations of grizzly bears in the state.

Meanwhile, the operators have stepped up underground drilling at the mine in an effort to expand the 200 South zone, discovered in 1998. In all, nearly 8,000 ft. of development are planned.

The 200 South zone began producing this year. Kennecott expects the mine will crank out 10 million oz. silver in 2000 at a cash operating cost of US$2.20 per oz., including gold, lead and zinc credits — about 10% higher than in 1999.

Proven and probable reserves stand at 10 million tons grading 16.2 oz. silver and 0.14 oz. gold per ton, plus 11.9% zinc and 4.5% lead.