Piskahegan acquires Mount Pleasant in New Brunswick

The Mount Pleasant property in New Brunswick is getting a new look.

Piskahegan Resources, a private company controlled by overseas investors, has acquired the project from Billiton Metals Canada and Lac Minerals for an undisclosed price.

The junior plans to mine the property for its tin, indium and bismuth mineralization. Billiton extracted tungsten and molybdenum from the property for about two years during the early 1980s. Lac then optioned the property with the intention of exploiting the tin potential, but poor markets for that metal prevented a startup.

Piskahegan holds mining rights for 4,000 acres, including some Crown-owned acreage. The existing infrastructure includes a mill capable of processing tungsten ore at 2,500 tonnes per day. The property is about 60 km from Saint John.

President Douglas Drew said the mine has been out of commission for 6-7 years and needs to be dewatered.

“One of the negatives on the property was that the metallurgy was difficult,” Drew said, explaining he is confident that newly developed processes for treating the ore will overcome any problems.

“There was also gossip that arsenic was a problem,” he said. Again, because of studies which have been undertaken during the past nine months, he is confident any such troubles can be overcome.

A consulting geologist for Piskahegan has calculated a preliminary reserve of 55 million tonnes, including 14 million tonnes proven. Of the proven tonnage, 9 million tonnes have been identified in tungsten-moly zones and 5 million contain tin, indium and bismuth mineralization.

Indium, because its conductivity, is used to coat car windows (for defogging) and high-definition television screens. It is also used in fibre optics. Bismuth is finding application as a replacement for lead in, for example, shotgun shells. Bismuth compounds are used in pharmaceuticals, cosmetics and chemicals.

It could take 2-3 years to reactivate the mine and Piskahegan is looking for an operating partner. Market studies are under way, as are plans for drilling and for retesting old core.

The company has met with provincial government officials regarding any environmental and reclamation concerns.

Meanwhile, in Nova Scotia, Rio Algom’s East Kemptville tin mine is awaiting dismantling after having closed in early 1992. The work is expected to be under way by spring.