FNX Mining Company Inc. and Dynatec Corp. are undertaking a massive $30-million advanced underground exploration program in the Sudbury basin.
In a May 19 news release, the companies stated they will initiate an immediate exploration program and feasibility study for their joint-venture Norman 2000 and Norman North deposits upon receipt of all required permits.
The bulk of the money - about $25 million - will be invested in the Norman 2000 program and should take about 24 months to complete.
The companies have reported high-grade copper-platinum-palladium-nickel mineralization in their drilling results.
The 1,000-acre property is 32 kilometres northeast of Sudbury in Norman Township.
The work will involve sinking a vertical shaft to the 2,450-level, as well as some crosscutting, ramping and drifting.
FNX says the work will be followed by more underground drilling, and bulk sampling to augment their drill results and provide more data for a resource estimate.
Once the underground program is complete, the Sudbury Joint Venture will conduct a feasibility study and determine the viability of placing the Norman
2000 deposit into production.
An access road is being prepared at the proposed shaft site.
The companies are also earmarking $5 million towards testing the near-surface Norman North deposit via a decline ramp. This 12-month program could lead to a production decision by the middle of next year, says FNX.
The Toronto-based junior optioned five previously mined Inco properties and has spent $40 million in exploration over the past two years. Together with Dynatec, they struck a joint-venture deal with Inco to access all the properties for exploration and possible production.
The companies’ McCreedy West property went into commercial production last November producing 550 tonnes a day with a resource estimated at 2.5 million tonnes.
The Levack Mine and McCreedy PM deposit are scheduled to begin production at the beginning of 2005 and are expected to deliver between 1,000 and 1,500 tonnes per day to Inco’s Sudbury smelter.
