BRITISH COLUMBIA – Castle Resources of Toronto has signed a letter of intent with Bell Copper Corp. to option the historic Granduc copper mine in Stewart. The option agreement would allow Castle to acquire up to a 90% interest over the next six years. Castle’s interest will be 51% by the end of year three if it spends a total of $7 million in exploration and drilling.
The Granduc mine produced 420 million lb of copper, along with significant silver and gold credits, from 1971 through 1984 when it was closed due to low copper prices. Development of the mine by Newmont and Asarco included construction of a 4.5-metre diameter, 18-km long tunnel which served as transportation for miners and equipment, as well as for ore and waste haulage. Granduc operations included underground mining, crushing, and grinding, followed by processing at a rated 8,165-t/d mill at the east portal of the tunnel. Concentrate was trucked 50-km to the year-round deep sea port facility at the head of the Portland Canal in Stewart. The historic non-43-101-compliant resource is calculated at 39.4 million tonnes in multiple zones averaging 1.73% Cu.
Bell Copper acquired the Granduc mine in 2004. Additional information is available at www.BellCopper.net.