Westmin development work geared towards production

The $4-million pre-development program at Westmin Resources’ Silbak and Big Missouri properties near Stewart, B.C., is progressing satisfactorily towards a positive production decision by year-end.

Road access is being improved and clearing of the mill site and initial open pit mining areas are under way. At this juncture, plans by Westmin to generate its own power from a hydro-electric station appear to have been scrapped. Apparently B.C. Hydro has agreed to extend its grid line into the Stewart area, providing power to the mine and local residents. This would increase operating costs for the proposed mining operation but reduce front-end costs.

Efforts are under way to “unitize” the Silbak and Big Missouri properties and The Northern Miner understands a decision on this matter will be made in the next few weeks. A rationalization of the various companies’ interests in the region has been long overdue and it will make financing their respective shares much easier.

Westmin has already delivered feasibility studies to Silbak Premier Mines (now controlled by Pioneer Metals), Tournigan Mining Explorations and Canacord Resources, the principal participants in the project. Under Westmin’s agreement with Silbak Premier, Silbak had the option of either participating at a 50% working interest or converting to a 20% net profits interest. Silbak has since decided to participate as a working interest partner.

Westmin has earned a 100% interest in the Big Missouri subject to a 30% net profits carried interest to Tournigan. Canacord has earned an 18.75% interest in Westmin’s share in both the Big Missouri and Silbak properties which has tended to cloud the ownership picture even more.

In conjunction with the pre- development program, Westmin has commenced a second-phase drill program at the Silbak Premier. About 15,000 ft is planned for the Glory Hole area and also the Power and Hope zones. Westmin says that drilling in the Glory Hole area is both to fill in and further test the down-dip extension of the West and Main zones. The intended targets are outside the limits of the present pit design which presumably could be extended to incorporate new reserves, Westmin concedes. The Power and Hope zones are the extension of the West zone and the near-surface expression of the mineralization is being tested for its open pit potential, the company adds.

The 1987 drill program on the Big Missouri has ended with 23,922 ft completed in 92 holes, mainly within the S-1 and Martha Ellen zones. Reserves there have been expanded and a re-estimation of geological and mineable reserves is currently in progress. Previous reserves were 1.7 million tons grading 0.1 oz gold per ton and 0.86 oz silver. Mineable reserves in the Glory Hole area total approximately 6.5 million tons grading 0.063 oz gold and 2.3 oz silver.