By NICK STEWART
Matachewan may host one of the province’s sole molybdenum mines within the next several years if drill results at Pacific Comox Resources’ Ryan Lake property continue to show significant promise, according to the company’s president.
“In recent years, molybdenum prices have gone up by a factor of 10, and we think we’re well situated,” Donald Empey, president of Pacific Comox, says.
“To say when we’ll be in production is a tough one, but to say we hope to be in production in less than two years is not too crazy, I don’t think.”
Pacific Comox, which also has a handful of properties in Mexico, is currently halfway through a 6,000-metre, $2 million diamond drill program at the property, located roughly seven kilometres northwest of Matachewan.
In recent weeks, assays have shown several promising results, including a 27-foot interval grading 0.27 per cent or 5.4 pounds per ton of molybdenum and 0.2 per cent copper, starting at 299 feet. Other positive showings include a 72-foot interval grading 0.14 per cent or 2.7 pounds per ton of molybdenum and 0.3 per cent copper, which includes an 11-foot interval grading 0.37 per cent or 7.4 pounds per ton of molybdenum.
“Even at two tons per pound, it should be quite a profitable operation,” Empey says. “So some of what we’re seeing out there is encouraging, to say the least. In fact, unless there’s a real crash in the market, we’re aiming to get both our Matachewan and Mexico properties into production.”
Having optioned the 500-acre property in 2005 and purchased it outright in 2006, Pacific Comox is drilling in and around two former producing mines on site. The South Zone hosted an underground copper mine which produced 163,490 tons grading 1.5 per cent copper and 0.21 ounces of silver between 1950 and 1957. An open pit operation also extracted roughly 6,000 tons grading 1.3 per cent copper and 0.4 per cent molybdenite in 1964 in the North Zone.
Since acquiring the property, Pacific Comox has conducted 9,000 metres of drilling across 80 holes.
The current drill campaign, undertaken by Rick Yost Diamond Drilling, will find step-out drilling continuing along the perimeter of the copper-molybdenum South Zone at greater depths. Reaching to roughly 500 feet, the drilling will extend past the former mine workings, which only reached to 450 feet.
While hesitant to guess the extent of mineralization prior to the completion of the resource estimate currently in development, Empey says drilling indicates the largest potential deposit stands to be in this zone.
“We’ve been finding mineralization over an east-west length of about 700 feet there and the same thing over a north-south length as well. Much of that is open at depth so we’ve got some pretty high hopes there.”
While recent assays such as 0.33 per cent copper across 364 feet are lower than the mine historically produced, Empey says open pit operations and strong mineral prices help to make such grades economic.
While smaller scale mineralization has been identified throughout the North Zone, the higher-grade molybdenum showings in the North Zone have also provided Empey with hope as to its potential. As a result, additional open pit activity may be considered for that zone as well.
In anticipation of speeding up the production decision, Pacific Comox is in the process of updating its closure plan and various permitting. Additionally, Empey says the site’s status as a former producer will also factor into the decision, given that much of the infrastructure remains intact.
Also expected to play a role is the presence of an operating mill on site, capable of processing up to 250 tonnes per day.
Although the mill is still processing barite for Extender Minerals, Pacific Comox will take full possession in November. From there, the company will be able to covert the mill to be able to treat molybdenum, a process which Empey says will cost in the range of “a few million dollars.” Another $4 million could also be spent to increase its capacity to 500 tonnes per day.
However, he says this will represent savings of millions more, as it would be considerably cheaper than the construction of a new facility on a greenfields site.
Of additional interest to Pacific Comox as the project moves forward is the sizeable stockpile of tailings left behind during the mill’s production period five decades prior.
Nearly 200,000 tonnes of tailings remain on the property, and are estimated to contain 116,000 pounds of molybdenum and 485,000 pounds of copper.
The company has also optioned the Log Lake project, a total of 3,500 acres adjacent to the Ryan Lake property. The site is currently undergoing prospecting as well as geophysical and surface testing.
www.pacificcomox.com
