Trail reduces zinc output

The Waneta Dam, on the Pend Oreille River, near Trail, B.C., is becoming a cash cow for Cominco (CLT-T). The zinc producer has been selling excess power to utilities and other customers in the wake of the recent energy crisis, and plans are in the works to boost power sales further in the months ahead.

In order to make more power available for sale, the company will reduce zinc production at the Trail refinery during the next two months. In addition, the metallurgical operations will close in August and September of this year. Cominco says sufficient power has been sold to ensure that profits will not falter during the planned 2-month shutdown, and that sales of excess power will further bolster profits.

The shutdown will result in a reduction of 48,000 tonnes of zinc production. These cuts follow a 20,000-tonne reduction in December 2000 and January 2001, which resulted in a total reduction in zinc output of 80,000 tonnes for the period. No employees will be laid off during the shutdowns.

Falco exits Yemen project

Charles Fipke’s Cantex Mine Development (CD-V) intends to continue field work at its Suwar base metals project in Yemen following the recent withdrawal of joint-venture partner Falconbridge (FL-T). The major viewed the country as “inhospitable and dangerous” to its contractors and employees.

Cantex, which has worked in the country since 1995, does not share this assessment. It says its employees have been well-treated and that the government has pledged to support worker safety in the field. It concedes, however, that safety concerns have gained prominence in the wake of a recent bombing incident in Aden. Cantex plans to carry out additional work at Suwar, and at other properties within its 41,000-sq.-km concession in the country. An international major has already requested information related to Suwar for consideration of a possible joint venture, the company adds. The property is considered prospective for base and precious metals, including platinum group metals.

Barrick extends option in Alaska

Senior producer Barrick Gold (ABX-T) has opted to make the initial payment necessary to move into the option phase of its joint-venture agreement with Western Keltic Mines (WKM-V).

Barrick paid $50,000 to begin its option on the California and Surf properties, both of which are in the Goodpaster gold district of Alaska. The major can earn a 51% interest in the properties by spending $2 million on exploration within three years. Western Keltic will continue to operate this year’s program, which is aimed at drill-testing targets identified during the previous year’s program. The junior has a 70% interest in the properties and can earn another 10% from Rimfire Minerals (RFM-V).

Donald McInnes, president of Western Keltic, views the continued support of Barrick as “a great endorsement of the exploration potential of the Goodpaster area.” The company’s properties lie on the eastern extension of the Pogo trend, which came to prominence when Teck (TEK-T) and partner Sumitomo of Japan outlined a 5.6-million-oz. gold deposit. The advanced project is now in the permitting phase.