Marshall to sell Brunswick zinc bet

Marshall Minerals (ASE) in Niagara Falls, Ont., has hung the “for sale” sign on its Restigouche lead-zinc-copper deposit in New Brunswick. Having already approached a number of potential buyers including Noranda (TSE), Marshall plans to use the proceeds of the sale to finance development of a West Africa gold project held by 67% owned subsidiary Eden Roc Minerals (ASE). Eden Roc holds a 90% stake in the company that owns the concession, while the remaining 10% is held by SODEMI, an Ivorian government mining concern. Marshall Vice-President Roderick Pye believes the capital cost of developing a 650-ton-per-day heap leach gold mine on a large concession in the Ivory Coast will be around $5 million.

As 500,000 tons of grade 0.12 oz. gold per ton has already been outlined in the shallow Anuiri deposit — one of a number of known deposits on the Ivory Coast concession — mining costs are expected to be US$170 per oz., according to Pye. Based on results of five of 16 holes drilled on the Anuiri deposit, Pye expects to see a significant increase in both tonnage and grade of those reserves. Drilled to a maximum depth of 100 ft. below surface, they returned a 61.4- ft. intersection averaging 0.20 oz.

“We hope to start production at around 15,000 oz. annually before moving up to 17,000 oz. in the second year,” he said.

Rather than issue stock in a depressed market, Marshall has hired Toronto-based IBK Capital Corp. to find a buyer for the wholly owned Restigouche property 50 miles west of Bathurst, N.B. The property contains proven reserves of 1.1 million tons grading 7.72% zinc, 0.32% copper, 5.99% lead, 3.62 oz silver and 0.035 oz. gold. Marshall is hoping to get $5 million in cash while retaining a royalty interest in future exploration successes.

According to consultant Micon International, an open pit mine could be in production at a rate of 385,000 tons annually as early as 1992. But, Breakwater Resources’ (TSE) recent decision to suspend operations at its nearby Caribou lead zinc mine presents a problem for both Marshall and any future buyer because a 50,000-ton- bulk sample from Restigouche was scheduled to be processed at the Caribou mine. In a bid to find other alternatives, Marshall financial officer Colin Smith is currently negotiating with officials from Breakwater. Meanwhile, Marshall has hired Denver-based contractor Kappes Cassiday to build a plant for the Ivory Coast project which Smith says could be in production six months after the necessary financing is in place.