Shipments of zinc concentrates from the Van Stone zinc mine owned by Equinox Resources (TSE) and a syndicate of European investors have started. The concentrate is shipped from the mine in northern Washington state to Cominco Ltd.’s smelter in Trail, B.C.
The company is currently mining low-grade material at the top of the Van Stone orebody and expects to be into the main part of the orebody by May.
The mine is expected to produce about 32,900 tons of zinc concentrate and 5,300 tons of lead concentrate per year for a contained metal production of 18,400 tons zinc and 3,700 tons lead.
Operating costs are projected at about US35 cents per lb. of zinc produced.
Equinox will have seven drill rigs operating on company properties this spring.
Two rigs recently started a 19,000-ft. drilling program on the 49% owned Rosebud property in Nevada. The property is a joint venture with 51% owner LAC Minerals (TSE). The program will include drilling on the two known zones of mineralization as well as on other mineralized occurrences on the property.
At a cutoff grade of 0.02 oz. gold per ton, proven and probable reserves on the property were last reported at 5.2 million tons grading 0.11 oz. gold per ton.
The company also plans to proceed with up to 10,000 ft. of drilling on three gold properties in the Republic area of Washington. Consolidated Parklane Resources (VSE) can earn a 100% interest in the properties by funding 110% of the costs. Equinox has the right to back in for a 49% interest in the property by paying Parklane 11% of its costs to the date of the back-in.
Equinox recently signed an earn-in agreement with Dromedary Exploration (VSE) on the Boise Queen gold property in Idaho. Dromedary can earn a 50% interest in the property by spending a total of US$750,000 and making payments of US$150,000 plus 200,000 shares over a 4-year period.
Surface exploration and permitting for a 5,000-ft. drilling program is now under way on the property. The Boise Queen produced gold from a number of high-grade veins at the turn of the century.
The vein structures are within broad, altered shear zones measuring up to 3,000 ft. in length and several hundred feet in width. Surface sampling over the shear zones returned consistent grades in the order of 0.06 oz. gold giving the property significant potential as a bulk mining situation.
Two drills are operating on the main zone of the J&L property near Revelstoke, B.C. Cheni Gold Mines (TSE) is earning a 60% interest in the property from joint owners Equinox and Pan American Minerals (VSE). Drilling will continue on the Yellowjacket zone in late April following the completion of further underground development.
An exploration program is planned for early May on recently acquired ground adjoining the Buckhorn gold mine in Nevada. Equinox holds a 24% interest in the mine and related ground while the balance is owned by Cominco Resources International (TSE).
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