Rio Algom terminates Key Anacon option

Citing the unlikelihood of finding a base metals deposit to meet its economic requirements, Rio Algom (TSE) has dropped its option on the Key Anacon Mines (TSE) property in the Bathurst camp of New Brunswick.

This past summer, Rio intersected a new zone of sulphide mineralization, 1.5 km east of the old mine site, with values up to 3.38% zinc, 1.35% lead, 0.75% copper and 40.94 grams per tonne silver over 82.27 metres. The property, about 19 km southwest of Bathurst, was explored in the 1950s via a 1,500-ft. shaft. At that time, Anacon Lead Mines delineated minable reserves of 1.7 million tonnes grading 7.43% zinc, 3.03% lead, 0.2% copper and 91.6 grams silver in the Main zone.

Had the option been renewed, Rio could have earned a 60% interest in the property by making cash payments and spending $10 million on exploration prior to Dec. 31, 1996.

With the option terminated, the property reverts back to Key Anacon, which is 68% controlled by K.C. Irving & Irving. Key Anacon spokesman David Jamieson said the company has no further plans for the property.