Timmins Nickel share offering seeks $6 million for Redstone

Operating at a rate of 200 tons per day, the small mine is processing high grade ore averaging 2.9% nickel per ton. Mineable reserves are estimated at 351,171 tons grading 2.91% nickel to a depth of 1,000 ft. Mill capacity will be increased to 400 tons per day this summer.

Another $1 million will be used for deep exploration on the property following the completion of a drill hole last spring which intersected 19.6 ft grading 2.76% nickel per ton from a depth of 2,700 ft. According to Timmins Nickel’s geological consultants Derry, Michener, Booth and Wahl, the property has excellent potential for hosting additional reserves.

Additional nickel production is also expected from the nearby Langmuir deposit, 10 km east of the Redstone mine. The company has an option to purchase a 100% interest in the former nickel producer by paying $250,000 to Inco Ltd. and Noranda Inc.

From 1973-1978, the Langmuir produced 1.25 million tons of ore grading 1.45% nickel per ton from the No 2 deposit. The mine was closed due to low nickel prices.

Timmins Nickel plans to mine the undeveloped No 1 deposit which hosts mineable reserves of 187,475 tons grading 1.79% nickel. Access will be via a decline ramp which was driven by Noranda and Inco to within 100 ft of the deposit before being stopped in 1977. Production will be at a rate of 180 tons per day.

Milling is on a toll basis at Giant Yellowknife Mine’s custom mill facility in Timmins. Timmins Nickel also has a letter of intent to lease Giant’s 3,000 ton per day Schumacher mill.

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