Samatosum beats recoveries made during tune-up

Higher grades and concentrate recoveries are being reported for the Samatosum polymetal mine operated by Minnova (TSE) near Kamloops, B.C.

Sized at 550 tons per day, the Samatosum mine started commercial production in July, 1989, at a capital cost of $32 million. Minnova owns 70%, while Rea Gold (TSE) has a 30% interest and 5% net smelter return royalty.

Silver production into concentrates at the mine in the first three weeks of January was 383,000 oz., a substantial increase over recoveries during the tune-up phase.

Rea Gold said this improved production performance is the result of better metal recoveries and higher throughput in the concentrating plant and slightly higher head grades of the ore feed.

Ore grade during the period was 1.3% copper, 3.8% lead, 5.7% zinc and 36.5 oz. silver per ton. Concentrate overall recoveries were 89% copper, 79% lead, 90% zinc and 90% silver.

The Samatosum mine produces three concentrates. During the first three weeks of January, the copper concentrate grades were 27% copper, 710 oz. silver, 16% lead and 5% zinc. Lead concentrate grades were 29% lead, 160 oz. silver, 5% copper and 18% zinc while the zinc concentrate grades were 51% zinc, 30 oz. silver, 5% lead and 1% copper.

It was noted that the substantial increases in concentrate grades was because mine development had progressed to the point where feed could be blended from several stockpiles to establish a more consistent head grade. In addition, recoveries were increased and chemical costs reduced as a result of a number of reagent changes.

In the early months of production, it was found that some of the near- surface ores carried above average oxide content which hinders metallurgical results. The extent of this “oxide cap” was not fully known before production began as the material is soft and difficult to recover in drilling. Rea Gold said a small tonnage of high lead oxide ore has been stockpiled for later processing.

The mill is fed from an open pit, but in the later years of the mine life, there will be a transition stage into underground reserves.

Revenues from the mining operation are about 55-60% from silver, 20% from zinc, 10% from gold and the balance from copper and lead. Rea Gold President Larry Reaugh said financial results for the company’s latest quarter (ended Dec. 31) would be released about mid-February.

Minnova is continuing exploration on the Samatosum property to expand reserves reported at the start of production as 851,400 tons of 26.7 oz. silver, 0.04 oz. gold, 2.9% zinc, 1.4% lead and 1% copper. A number of favorable geological targets located in previous programs will be drill-tested, including some deep exploratory holes later in the season.

A company under the Noranda (TSE) corporate umbrella, Minnova has also been exploring a large land package near the Samatosum mine property.