Hecla negotiating deal for large yttrium deposit

Active across Canada, Hecla Mining Co. of Canada continues to seek out attractive mineral properties for exploration and development. In Quebec-Labrador, Hecla Canada is working out the final arrangements with Iron Ore Co. of Canada for resuming the evaluation of Strange Lake, the world’s largest, and potentially the best, yttrium deposit. In addition to yttrium, Strange Lake contains large, high- grade reserves of a unique zirconium mineralization and significant quantities of middle and heavy rare earths.

Exploration of the high-grade, near-surface deposit has been completed by IOC. Hecla will proceed with metallurgical investigations and marketing studies, and can earn 75% of the property by bringing it into production.

At the MacKenzie project, 10 km east of Echo Bay’s Lupin mine in the Northwest Territories, a 54,000-acre property with joint venture partner Contwoyto Goldfields (ASE). The objective is economic iron formation-hosted gold deposits similar to the Lupin and Homestake orebodies.

In the 1989 exploration program, two new targets with up to 0.4 oz. gold per ton in frost-heaved boulders of sulphide-bearing iron formation were found by prospecting and outlined for subsequent diamond drilling by geophysical and geological surveys.

Reinterpretation of geophysical and structural data has identified other drilling targets along a major fault. Frost-boil geochemical surveys have indicated several additional areas for follow-up exploration.

In the Casa Berardi-Quevillon area of Quebec’s Abitibi greenstone belt, Hecla Canada owns five gold properties in the Cavalier, Vezza, Le Tardif, Bruneau and Desjardins twps., which collectively make up Hecla’s North Gold zone project.

Evaluation of all geophysical and geological data from the initial reconnaissance surveys has identified several targets for further exploration. The most obvious targets are in the Cavalier property. The targets are possible mineralized iron formations within strongly altered rocks, close to a major fault zone, where previous drilling has intersected thin (1-3 ft.) zones of ore- grade mineralization (0.2-0.9 oz. gold).

In the Cape Spencer area of New Brunswick, Hecla will begin exploration of a very large gold-bearing hydrothermal system within a major Hercynian fold and thrust belt of the Fundy Coastal zone on properties optioned from Mispec Resources (ME) and Kam Creek Mines (TSE). The objective is disseminated gold mineralization closely associated with extensive zones of pyrite-illite alteration.

Granduc Mines (TSE), 30% owned by Hecla, maintained its 40% interest in the highly successful Sulphurets gold-silver project, 56 km northwest of Stewart, B.C. Granduc and 60% owner Newhawk Gold Mines (TSE) recently announced proven and probable geological reserves, calculated by the independent consulting firm Watts, Griffis and McOuat Ltd., totalling 715,400 tons grading 0.431 oz. gold and 19.7 oz. silver per ton based on a cutoff grade of 0.2 oz. gold equivalent and a minimum mining width of 5 ft.

Exploration expenditures on the Sulphurets property by Granduc and Newhawk now total about $30 million. A final feasibility study based on the announced Watts reserves is being prepared by Cominco Engineering Services Ltd. for delivery to the joint venture by mid-March this year.