SUDBURY, Ontario The McCreedy West mine resources are growing and being upgraded to reserves. Probable reserves now total 1.35 million tons, including the Upper Main, Inter Main and East Main zones in the contact deposit (1.24 million tons grading 1.91% Ni and 0.23% Cu) and the 700 zone in the footwall deposit (119,000 tons grading 0.75% Ni, 6.83% Cu, and 0.17 opt Pt-Pd-Au).
The new reserve figures represent an 11% increase from earlier estimates. In addition, there are 520,000 tons of indicated resources in the 950 deposit, bringing the estimate of total indicated resources up to 1.87 million tons. Another 324,520 tons of inferred resources are located in the contact and footwall deposits. Significant potential exists to increase the McCreedy West resource/reserve estimates as the ongoing exploration program continues throughout the year.
Partners DYNATEC CORP. (the operator and 25%-owner) and FNX MINING (75% owner) have reopened the mine under the terms of their Sudbury Joint Venture agreement. Dynatec believes that it will cost about $61/ton for mining and $62/ton for processing the ore, compared with $176/ton for the value of contained metals. The incremental mine development capital cost for the Phase 1 mining is estimated at $12.0 million. An additional $12.8 million of capital will be spent on plant and equipment, some of which, like the surface ore pad, sample tower, and buildings, will be available for future mining of other deposits in the McCreedy West-Levack Complex. Additional money has been earmarked for the 2003 exploration program.
Details of this year's production plans for McCreedy West are available at www.fnxmining.com.