ARTVIN, Turkey AYELI BAKIR ISLETMELERI, a 55%-owned subsidiary of Toronto’s INMET MINING, has agreed to purchase all of TECK COMINCO MADENCILIK SANAYI (TCM), a wholly-owned subsidiary of TECK COMINCO, of Vancouver. TCM’s major asset is the Cerattepe property, which hosts both a high-grade copper deposit and a near-surface gold/silver deposit.
Inmet president and CEO, Richard Ross, said that, given ayeli’s management, infrastructure and local expertise, this is an opportunity to add about 20,000 t/year of low-cost copper to ayeli’s metal production.
ayeli is one of the lowest cost underground base metal mines in the world. Commercial production began in 1994. Although mining was affected by rock fall last year, this year’s production is expected to total 39,000 t of copper and 36,000 t of zinc at an average cash cost of US$0.40/lb Cu.
Teck Cominco acquired the Cerattepe property in 1988 and has spent Cdn$17 million for exploration, drilling and a pre-feasibility study on the site since 1990. Probable reserves are estimated as 3.0 million tonnes of oxides at 4.2 g/t Au and 151 g/t Ag and 3.7 million tonnes of sulphides at 5.2% Cu, 1.2 g/t Au and 25 g/t Ag. In the indicated resource category there may be 5.2 million tonnes of oxides at 3.8 g/t Au and 117 g/t Ag and a further 200,000 tonnes of sulphides grading 5.2% Cu, 1.8 g/t Au and 30 g/t Ag.
Inmet has agreed to make an initial payment of US$2 million to Teck Cominco upon closing the deal. A further US$4.5 million will be paid either on commercial start-up or 18 months after the first payment. A final US$4.5 million is due 12 months after production begins or at the end of December 2006. Additional payments have been deferred pending gold production.
The entire press release, including the names of qualified persons, is available at www.inmetmining.com.