QUEBEC - XSTRATA COPPER has agreed to mill copper ore from the Fabie Bay copper deposit 35 km from its Horne concentrator in Rouyn-Noranda, and to purchase the concentrate on industry standard terms. The Fabie Bay VMS deposit is owned by FIRST METALS of Toronto, and GLOBEX MINING retains a 10% net profits interest and a 2% net metal royalty.
First Metals will provide the money and Xstrata the expertise to refurbish a portion of the mill. The designs for the flowsheet and tailings management are underway, and efforts have begun to hire a staff of 30 for the mill. The company expects the project to be completed by Q4 2007.
Initial ore production from Fabie Bay will come from a 10-m bench in the existing pit. First Metals has already drilled off 80,000 t of ore in preparation for mining. All of the reports required to obtain a production licence have been filed.
The Fabie Bay deposit was partially developed by former owner Noranda. Additional details are available at either www.FirstMetalsInc.com or www.GlobexMining.com.