Development News (December 01, 2001)

Prototype metal recovery program at Potter Mine property

Millstream Mines Ltd. is preparing a pre-feasibility and design study for the construction of a prototype processing plant capable of treating over 100 tons per day of tailings materials. This is prompted by the encouraging results of testing the extraction of copper, zinc, cobalt and magnesium contained in the tailings that were produced during the operation of the Potter mine. The Potter mine property is located in Munro Township, Matheson area, northeast Ontario.

The plant will be built in a modular format that will allow for an orderly expansion of processing capabilities. Previous drilling, sampling and assaying of the tailings confirmed a calculated average grade of 3.5% Mg, 0.2% Cu, 1.5% Zn and 0.05% Co in 480,000 tons of tailings. Based on current market prices for magnesium at US$1.80/lb, copper at US$0.65/lb, zinc at US$0.40/lb and cobalt at US$12.25/lb, the in-situ metal value equates to Cdn$114,454,000 using a 1.56 Cdn$/US$ conversion factor.

The in-situ pilot test program, in conjunction with simulated in-situ tests, have confirmed that the Electrochemical Quik Leach and proprietary Membrane technologies could achieve commercial metal recoveries. Enpar Technologies’ Electrochemical Quik Leach technology (patented) enhances the leaching rate of sulphide materials, and the Membrane technology concentrates leached metal ions, enriching the leached (pregnant) solution.