VANCOUVER — A production decision is expected by late spring on the Silver Queen polymetallic property near Houston, B.C., owned 60% by Houston Metals Corp. and 40% by New Nadina Exploration. A feasibility report based on a 500-ton-per-day operation is in the preliminary stages and will be finished early May. Work has also started on the Stage 1 permitting process.
Houston spent $2.25 million in 1987 on 4,418 ft of drifting, 5,700 ft of underground drilling, 94,000 ft of surface drilling, metallurgical testing and rehabilitation of old mine workings. An additional $3 million has been raised in two flow- through financing agreements.
A 2,800-ft decline at the south end of the mine is in progress and a 4,300-ft crosscut from west to east will intersect a number of vein structures at the 2,600-ft level. Underground drilling and drifting is also continuing.
The exploration work is expected to increase reserves from the 1.5 million proven, probable and inferred tons. In the proven and probable category are 577,590 tons averaging 0.108 oz gold, 7.51 oz silver, 0.49% copper, 1.49% lead and 6.53% zinc, as well as germanium, indium, cadmium and gallium values.
The mine was put into production with a 500-ton concentrator in 1972 but closed in 1973 because of problems in the mining method, mill design and low metal prices. Extensive metallurgical tests are under way and Houston is negotiating with smelters to take the ore. The complex orebody is similar to Equity Silver Mines and contains some arsenic.
Houston is entitled to a 2.5-times return of its exploration money from 80% of cash flow, before New Nadina gets its full 40% interest.
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