More Zinc?Found this on the CMM board.
source: https://nbbusinessjournal.canadaeast.com/journal/article/847187
The investors behind a firm planning to reopen the Caribou mine near Bathurst hope there might be enough ore deep in the ground to extend its life at least another two decades.
Fran Scola, one of three principal financial backers of Maple Minerals Corp., said Wednesday the company knows the mine - only operable with high market prices for zinc - is forecast to be out of ore in a few years' time.
"If my memory serves me right, seven to nine years," Scola said. "But we hope there's potential with drilling to find more ore, deeper.
"We hope that if we can restart the mine, the economics are favourable and we get the necessary support from the local government, that we could run this mine for 20 to 30 years, with some luck and some deep exploration," Scola said.
The company believes it can achieve low-cost production of zinc, lead and silver at Caribou.
Maple Minerals Corp. recently completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines Inc., the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed about a year ago.
Blue Note went into receivership last February and declared bankruptcy in July; Bob Smith of PricewaterhouseCoopers LLP is negotiating the sale with Maple Minerals Corp.
Smith said Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and if the court approves Stage 2 early next month, the company will pay US$1.25 million for the mines, land, buildings and other assets.
"The deal we struck is we will both work hip-to-hip to make this mine work if we can," Smith said, pointing out Maple Minerals is getting good bang for its buck: Blue Note had invested about $150 million into the mine before halting operations.
Maple Minerals currently has experts poring over old data from the Caribou mine to look at the economic feasibility of reopening, Scola said. He said the company plans to leave the Restigouche open-pit mine untouched; it is nearly out of minerals and too close to a salmon preserve Maple Minerals does not want to risk polluting.
Under new ownership, the Caribou mine could employ as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.
"Our hope is to reopen and our hope is the employment levels would be the same," Scola said.
The company will be looking for government support he but did not specify whether this would be financial or otherwise.
"We don't know everything for sure because we're still examining the situation but we would like the government to create the kind of atmosphere that would give us the best chance for success," Scola said.
"Like anything, it's always a partnership between public and private."
Geoffrey Cowley, appointed the company's CEO, is by trade a metallurgist who has significant experience in metal mining operations in Africa, Asia, Middle East and in the countries of the former Soviet Union.
Cowley was previously CEO of Kinross Gold Corp. (TSX:K) in Russia and before that served as chief executive of Strikeforce Mining and Resources PLC, a large Russian mining company.
The principle investor in Maple Minerals is Maxim Finskiy, who formed Russia's Norilsk Nickel as well as Polyus Gold - the country's largest gold company.
Peggy Smith, president, CEO and chairwoman of Century Mining Corp. (TSX.V:CMM), is also a key investor.
Scola considers himself a venture capital investor for mining companies; he sits on the board of seven public and private mining firms and has investments in several others.