Magna Mining Inc has reported an initial mineral resource estimate for the Denison Project which includes the past producing Crean Hill mine in Sudbury, Ontario. The company said it has closed on the acquisition of Lonmin Canada Inc., which was announced in August and included the Denison Project.
With a history that spanned more than 80 years, Crean Hill produced significant amounts of nickel, copper, gold and platinum group metals. More recent exploration on the property by Loncan demonstrated the potential for high grade platinum, palladium and gold (PGE) mineralization in the footwall of the contact nickel zones.
The Denison mineral resource estimate includes contained metal (indicated category) of 500 million lb of nickel, 450 million lb of copper, and 1.7 million oz of PGE. The high grade underground indicated resource of 14.5 million metric tons has a grade of 2.07% nickel equivalent. Resource starts at surface and could be amenable to open pit mining as well as near surface underground mining methods. The total indicated resource. The mineralization is well defined and extends to 1,200 m below surface.
“We believe that this mineral resource estimate clearly demonstrates that the Denison Project has considerable remaining mineralization, and has the potential to, once again, become a significant producing mine,” Magna Mining CEO Jason Jessup said. “The proximity to Shakespeare, means that this asset is a natural fit for our company and gives us a unique advantage in exploring and developing Crean Hill. Now that the acquisition has closed, we plan to commence our maiden exploration program at Crean Hill and commission a new technical study to demonstrate the potential synergies between Crean Hill and Shakespeare.”
Magna’s Shakespeare mine has major permits for the construction of a 4,500 mt/d open pit mine, processing plant and tailings storage facility.