The Triumvirate: Inco/Dynatec/Fort Knox The Fort Knox/Dynatec Joint Venture will produce and deliver a substantial tonnage of Nickel, Copper and Precious Metals from the five former Inco mines, McCreedy West, Victoria, Levack,
Norman and Kirkwood which have been optioned by Fort Knox/Dynatec. This will be accomplished by the use of the combined experience of Fort Knox in exploration and Dynatec in Mine Development and Mine production.
Mine infrastructure presently in place allows rapid development to production.The indicated reserves at Upper McCreedy are high grade but narrow. Dynatec has extensive experience in narrow vein mining at Inco's Shebandowan Mine and at Midas Nevada. The successful reactivation of production will provide additional feed to the Inco mill at Clarbelle. This mill has capacity of approximately 33,000 tonnes per day but is presently at 25,000 tpd.
McCreedy-Levack ceased production in 1998/99 with several zones of measured ore as well as indicated and inferred reserves. Precious metal prices were low in the late 1990's, overheads were high, which affected profitability and influenced the closure decision. With PM prices rebounding, an attractive target has been produced in the McCreedy West PM zone with indicated tonnages estimated as high as 10 million tonnes. Within that ore tonnage, there is expected to be some very high grade, mineable PM zones.
The McCreedy Exploration program will confirm measured ore in place, expand the reserve and place indicated reserves at a higher confidence level. Work will commence in the coming weeks with an aggressive drilling program.
Phase 1 Mining will be at a rate of 750 tonnes per day and should begin within six months. By next year the mining rate should be 2000 tonnes per day.
The Fort Knox / Dynatec Joint venture will begin substantial and aggressive exploration of all five of the acquired properties. The overall objective of the proposed programs for all sites is to outline mineable reserves. Geophysical surveying using UTEM will be an integral component of the exploration programs.
The exploration highlights include:
The Victoria property's mineralized zones(No.1 West and No.4) will be tested by surface boreholes totaling 60,000 feet. In addition, the open pit mining potential west of the Victoria shaft will also be tested. The budget for this Victoria exploration program will be $2.4 million.
A total of $1.1 million will be spent on the Norman property to do compilation ,metallurgical testing ,drill surface boreholes and determine the commercial viability of open pit mining on the property.
The footwall breccia zones in back of the McCreedy West and Levack mine will be thoroughly evaluated with deep surface drilling and a UTEM program budgeted at $2.1 million.
Surface drilling will be conducted on the McCreedy West and Levack properties concurrently with the underground rehabilitation program to provide underground drill access. The McCreedy West 700, 950, and the east and west extremities of the of the PM footwall zones and the McCreedy Boundary contact zones will be drilled from surface. I'm hearing the McCreedy Boundary Zone has the makings of a five million tonne orebody with high nickel values.The area north of Levack's No.3 orebody and the UTEM anomalies in the Levack footwall rocks will also be drilled from surface. The surface exploration budget at the McCreedy and Levack properties is $3.5 million and consists of approximately 130,000 feet of drilling.
The McCreedy West ramp to the 1600 level, the the 950 level and the 1600 level from the McCreedy ramp to the Levack No.2 shaft will be immediately rehabilitated. The Levack No.2 shaft will also be rehabilitated to provide underground drill access to the 1600 level.The underground rehabilitation program will cost in excess of $1.3 million.
Once underground access is available, underground drilling will be carried out on the McCreedy West PM and Boundary zones,the Levack 1900 and 1300 zones, the No.7 zone and the extension to the No.3 ore body. This underground drilling will cost about $2 million.