Montreal-based Murgor Resources (MUG-V, MUGRF-O) has received preliminary resource figures for the Hudvam and Fon massive-sulphide deposits near Flin Flon, Man., from its consultants.
Murgor, which optioned the properties from HudBay Minerals (HBM-T, HBMFF-O), plans further drilling to expand both resources. Under its agreement with HudBay, Murgor has to spend $13 million on Hudvam, Fon, and two other properties: Tyr, northwest of Flin Flon on the Saskatchewan side of the provincial boundary, and Wim, near Snow Lake, Man.
Both estimates, based on drilling by HudBay predecessor Hudson Bay Mining and Smelting, are classed as inferred resources.
The Fon resource, calculated by Wardrop Engineering, is 4.5 million tonnes grading 3.73% zinc, 0.25% copper and 12 grams silver per tonne, based on a cutoff grade of 1% zinc. Increasing the cutoff grade to 3.5% brings the tonnage down to 1.5 million, bumping the average grades to 6.79% zinc, 0.27% copper and 18.5 grams silver.
Murgor has a 5,000-metre program of diamond drilling under way at Fon, and a 7,000-metre program under way at Hudvam, where consulting firm AMEC Americas estimated a resource of 1.2 million tonnes grading 1.17% copper, 1.71% zinc, 2.9 grams gold and 10.5 grams silver per tonne. The estimate is based on a composite cutoff grade equivalent to 2% copper, at prices of US$1.10 per lb. (US$2,420 per tonne) for copper, US60 per lb. (US$1,320 per tonne) for zinc, US$475 per oz. for gold and US$6 per oz. for silver.
Murgor has budgeted for helicopter-borne electromagnetic surveys, deep-penetrating ground electromagnetics, and 20,000 metres of drilling on its northern Manitoba properties.
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