Mine Development News (June 01, 2001)

Major contract awarded at Snap lake

De Beers Canada Mining Inc. has selected AMEC Simons Mining and Metals as its alliance partner to perform the optimization study, engineering, procurement and construction management of De Beers’ Cdn$300-million Snap Lake diamond mine project.

Snap Lake, located 100 km south of Lac de Gras, N.W.T., will be Canada’s first underground diamond mine and will be the first mine to be developed to this stage by De Beers outside of southern Africa. The optimization and design phases of the project, and the ongoing exploration program, will employ over 200 people including contractors and other service providers at the job site and at offices in Vancouver, Yellowknife and elsewhere.

AMEC’s project scope includes underground mining, process plant, a paste backfill system, living quarters, service complex, roads, airstrip and utilities. Work began in the first quarter of 2001 and is scheduled for completion in 2004.

AMEC has been involved with the Snap Lake mine project since 1998.

Prairie Creek scoping study completed

Canadian Zinc Corp. has successfully completed a scoping study for its Prairie Creek project. The study was designed to outline and guide the re-development of the existing zinc-lead-silver mine and mill, 200 km west of Fort Simpson, N.W.T.

The base case indicates a break-even cash cost of production of US$0.345 per pound of saleable zinc after by-product credits, but before financing and taxation. The mine life will be a minimum 18 years. It will take advantage of the infrastructure put in place for Cdn$67 million in 1982 but never operated. Indicated capital costs for the new operation are estimated at Cdn$40.5 million including the construction of an all-weather access road.

The six-month study was prepared in-house using independent consultants, and was examined and confirmed by Micon International Ltd. A bankable feasibility study is to be ready the end of 2001. Full permits could be forthcoming by late 2002, and the operation could commence early in 2003.

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Feasibility study for perseverance project

Noranda Inc. of Toronto has hired MRDI, a wholly-owned subsidiary of AMEC, to assist in a detailed feasibility study of the Perseverance project, about 6 km from Noranda’s operating Matagami mine concentrator in northwest Quebec.

Recent work has resulted in a resource estimate of 5.1 million tonnes in three separate orebodies containing zinc, copper, silver and gold. The project is currently envisioned as an underground mine, although the option of an open pit will be examined. The study will also consider various approaches to mine infrastructure.

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