Inmet hits hot hole at Cayeli

Recent deep drilling by Inmet Mining (IMN-T) has returned an impressive 25.5-metre intersection grading 14.4% copper, 8.5% zinc and 129 grams silver per tonne below the existing workings of the Cayeli mine in northeastern Turkey.

The underground hole was collared at the 900-metre level, which is at the bottom of the producing mine. The mineralized zone was intersected after 317 metres of drilling. The true thickness is estimated at about 18 metres, while the horizontal width is estimated at about 25 metres.

Inmet President Richard Ross says the drilling confirms expectations that resources at Cayeli can be substantially increased. At the end of 2000, the mine had total proven and probable reserves of 14.6 million tonnes grading 4.1% copper and 6.2% zinc, with additional inferred resources of 1.3 million tonnes grading 4.9% copper and 8.6% zinc.

Inmet holds a 49% interest in Cayeli, which last year produced 37,400 tonnes copper and 26,000 tonnes zinc. The profitable operation boasts low cash costs, which have consistently ranged between US40 and US45 per lb. copper (including byproduct credits).

Back in Canada, Inmet has inked a deal to earn a 60% interest in Loubel Exploration‘s (LBX-M) Lemoine polymetallic property near Chibougamau, Qubec.

Inmet can earn its stake by spending $3 million and subscribing to a private placement of $400,000 worth of Loubel shares over five years. The deal is subject to regulatory approval.

The Lemoine property is situated 25 km southeast of Chibougamau, in Lemoine and Rinfret townships. It covers an area of 3,341 ha on the southern flank of the Chibougamau pluton. Between 1973 and 1985, the Lemoine mine produced 758,070 tonnes grading 9.56% zinc, 4.2% copper, 4.5 grams gold and 83.8 grams silver per tonne.

The property covers a 15.5-km-long portion of the exhalative horizon that hosts the Lemoine mine. Loubel says there is potential for depth extension near the mine.

Last winter, 4,000 metres of drilling on the southwestern portion of the property returned sub-economical mineralization, but cut intensive alteration. Loubel believes a second exhalative horizon exists to the north of the Lemoine horizon.