Hecla is already well established in Canada with advanced exploration programs currently under way on several properties in Nova Scotia, British Columbia and the Northwest Territories.
The Mooseland project in Nova Scotia, a one-year-old joint venture with Acadia Minerals Ventures (TSE), is one active project. Hecla can earn a 60% interest in the Mooseland gold property by conducting a feasibility study and, if warranted, placing the property into production.
Hecla has since signed an agreement with Biron Bay Resources to have Biron Bay contribute $9.5 million in funds for shaft sinking and exploration in return for a 25% share in the property. Hecla will provide $3 million of the exploration funds through the purchase of one million shares of Biron Bay at $3 per share, earning a 10% interest in Biron Bay. Hecla will continue to be the operator of the Mooseland property.
Surface drilling has indicated the potential for a substantial tonnage of economic grade gold ore. An underground exploration program designed to further define the mineralized zone and the grade of gold it contains is now under way.
At the site, the headframe and surface buildings have been completed, and shaft sinking will be finished by the end of the third quarter of 1989. The feasibility study, consisting of the underground exploration program and pilot plant metallurgical testing, is expected to be completed by the end of 1989.
Hecla now owns an 18% net interest in Granduc Mines’ (VSE) Sulphurets gold-silver project in British Columbia by virtue of its 46% ownership of Granduc. In November Granduc and its joint venture partner, Newhawk Gold Mines (VSE) announced updated geological reserves indicating 854,072 tons of mineralized material at an average grade of 0.35 oz gold and 22.9 oz silver per ton.
Since the project started in 1986 Granduc and Newhawk have spent $18 million on the property. A final feasibility study will be completed in the first quarter of 1989, and a decision on the commercial viability of th e project will be made by mid-year.
In 1988 Hecla spent $1.9 million on the Thor Lake beryllium project, a joint venture with Highwood Resources (TSE) in the Northwest Territories. Most of that was focussed on process technology and marketing strategy. Another $600,000 has been budgeted for the program in 1989 to complete the feasibility study.
At Lakefield Research in Ontario construction was completed on a $750,000 pilot plant to convert phenacite concentrate to beryllium hydroxide. The pilot plant will duplicate the process of a full-size plant, providing the detailed engineering and processing data needed for construction of commercial facilities.
Another pilot plant program, also at Lakefield, successfully simplified a metallurgical process for phenacite flotation, a necessary step in the production of beryllium hydroxide. The initial environmental evaluation for the mine, an essential part of the permitting process, is 85% complete. Beryllium’s high strength, light weight, and high conductivity make it ideal for many electronic, aerospace and nuclear applications.
The deposit contains 1.8 million tons of 0.76% beryllium oxide reserves and Hecla can acquire a 59% interest in the property from Highwood by bringing it into commercial production. A decision on how to proceed with the beryllium project will be made in 1989.
Hecla is also conducting several other exploration and joint venture programs in Canada including gold exploration at sites in the Northwest Territories, Quebec and Ontario. It is also exploring a specialty metals deposit at the Lake Zone, just south of the Thor Lake beryllium deposit.
Hecla Mining Company of Canada Ltd. is a wholly-owned subsidiary of Hecla Mining Company, a diversified minerals and mining company based in Coeur d’Alene, Idaho. the parent company has been in existence for close to 100 years and has a number of precious metals and industrial minerals mines in the United States. Hecla is actively exploring for and developing several precious metals, industrial minerals and specialty metals properties in North America.
Hecla Canada has recently established an office in Toronto and intends to become more aggressively involved in the Canadian mining scene. Under the direction of its new President, William Allan, Hecla Canada has assembled a team of professionals with the objective of expanding Hecla’s exploration activities in Canada and pursuing contact with other Canadian mining companies regarding exploration and development opportunities. Hecla is already well established in Canada with advanced exploration programs currently under way on several properties in Nova Scotia, British Columbia and the Northwest Territories.
Mooseland Project (Nova Scotia). In March, 1988 Hecla entered into an agreement with Acadia Minerals Ventures Limited of Toronto, Ont., in which Hecla will earn a 60% interest in the Mooseland gold property by conducting a feasibility study and, if warranted, placing the property into production. Hecla has since signed an agreement with Biron Bay Resources Ltd., of Toronto to have Biron Bay contribute $9.5 million in funds for shaft sinking and exploration in return for a 25% share in the property. Hecla will provide $3 million of the exploration funds through the purchase of one million shares of Biron Bay at $3 per share,earning a 10% interest in Biron Bay. Hecla will continue to be the operator fo the Mooseland property.
Surface drilling has indicated the potential for a substantial tonnage of economic grade gold ore. An underground exploration program designed to further define the mineralized zone and the grade of gold it contains is now under way. At the site, the headframe and surface buildings have been completed, and shaft sinking will be finished by the end of the third quarter of 1989. The feasibility study, consisting of the underground exploration program and pilot plant metallurgical testing, is expected to be completed by the end of 1989.
Granduc Mines Sulphurets Project (British Columbia). Hecla now owns an 18% net interest in the Sulphurets gold-silver property by virtue of its 46% ownership of Granduc Mines Limited. In November Granduc and its joint venture partner, Newhawk Gold Mines Ltd., announced updated geological reserves indicating 854,072 ons of mineralized material at an average grade of 0.35 oz gold per ton and 22.9 oz silver per ton.
Since the project started in 1986 Granduc and Newhawk have spent $18 million on the property. A final feasibility study will be completed in the first quarter of 1989, and a decision on the commercial viability of th eproject will be made by mid-year.
Thor Lake Joint Venture (Northwest Territories). In 1988 Hecla spent $1.9 million on the Thor Lake beryllium project, focusing on process technology and marketing strategy. Another $600,000 has been budgeted for the program in 1989 to complete the feasibility study. At Lakefield Research in Ontario construction was completed on a $750,000 pilot plant to convert phenacite concentrate to beryllium hydroxide. The pilot plant will duplicate the process of a full-size plant, providing the detailed engineering and processing data needed for construction of commercial facilities. Another pilot plant program, also at Lakefield, successfully simplified a metallurgical process for phenacite flotation, a necessary step in the production of beryllium hydroxide. The initial environmental evaluation for the mine, an essential part of the permitting process, is 85% complete. Beryllium’s high strength, light weight, and high conductivity make it ideal for many electronic, aerospace and nuclear applications.
The Thor Lake property is owned by Highwood Resources Limited of Vancouver, B.C., Hecla’s joint venture partner in the project. The deposit contains 1.8 million tons of 0.76% beryllium oxide reserves and Hecla can acquire a 59% interest in the property by bringing it into commercial production. A decision on how to proceed with the Thor Lake beryllium project will be made in 1989.
Other interest. Hecla Mining Company of Canada Ltd., is conducting several other exploration and joint venture programs, including gold exploration at sites in the Northwest Territories, Quebec and Ontario. hecla Canada is also exploring a specialty metals deposit at the Lake Zone, just south of the Thor Lake beryllium deposit. William Allan is president of Hecla Mining Company of Canada Ltd.
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