Octan seeks financing for Bonanza silver bet

Last fall, Octan acquired the former Terra Mines (TSE) assets — including the former Silver Bear, Norex and Smallwood silver mines, an all-weather airstrip and 500-ton- per-day Camsell River mill — which were shut down in 1985 due to low silver prices. In a 3-month period prior to the mill closing, Terra produced 216,749 oz silver.

Octan also picked up the Bonanza and El Bonanza silver deposits which are located 30 miles further north.

The 10,000-acre land package consists of 11 mineral leases and one mineral claim, plus surface infrastructure and underground mining equipment.

A recent 15-hole program at the Bonanza silver claims (which have been the subject of underground exploration) attempted to define reserves near phase 1 exploration hole B-88-6,” President Martin Burger told The Northern Miner recently. The hole included an 8-ft intercept that assayed 133.4 oz silver per ton.

The program designed to outline the parameters of an orebody and an independent consultant has recommended that the company spend between $1.5 million and $2 million to explore a number of El Bonanza targets.

According to an independent report by Edmonton-based consultant geologists Trigg, Woollett, Oslon, silver deposits of the Great Bear Lake district exist in veins, usually less than a few feet wide, that transect early Proterozoic sedimentary, volcanic and granitic rocks. High grade silver deposits have recently been discovered in the district including the unmined Graham silver deposit on the Norex property which is estimated to contain 850,000 tons of material at an average grade of 250 oz silver per ton.

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