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ESQUEGASB ESQUEGA 010 /).t' ; THE UKEXOUN? :VCKEl •".•ri? :r:?OSIT, AK?cy. ••; f*iarai:., ^.y.AC:' -'.o. -.cOr . . r C, -ft- January, 1968. l v-

THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 1: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

ESQUEGASB ESQUEGA 010

/).t';

THE UKEXOUN? :VCKEl •".•ri? :r:?OSIT,AK?cy. ••; f*iarai:., ^.y.AC:'

-'.o. -.cOr . . r

C, -ft-

January, 1968.

l v-

Page 2: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

42C02SE0008 ESQUEGA26 ESQUEGA 010C

THE IAKEMOUNT NICKEL-COPPER DEPOSIT, ALQOMA DISTRICT, ONTARIO

INDEX Page

CONCLUSIONS ————————————————————— l

R3CCKMENDATIONS —————————————————— l

STATISTICAL SUMMARY ——————————————— 2

HISTORY ——— r ———————————————————— 3

LAND SITUATION ———————————————————— 3

LOCATION, TRANSPORT and POWER ———————— 3

GEOLOGY ——————————————————————— l*

MINERALIZATION ———————————————————— 6

ORE RESERVES —————————— - ——————— — 8

PRECIOUS METALS ——————————————————— 10

ORE DRESSING TESTS ———— - ——————————— 10

WATER PROBLEMS —— - ——— -- ——————————— 10

EXPLORATION —————————————————————— 11

ESTIMATE OF COSTS ————————————————— 12

1. Historical Summary

2. Sunmary of assayed sections of drill boles

3- Pit volume calculation

4. Precious metals summary

5- Ore dressing tests

6. Ore reserve calculations (bound separately with sections)

Three plans and 35 sections accompany this report.

(

Page 3: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- l -

CONCLUSIONS

At the Lakemount property there is an orebody of 2.5 million tons

containing Q.36% copper, Q.55% nickel and about U.S^l.OO per ton precious

metals. (511.35 recov. metal value)

Exploration including 25,000 feet of drilling is required before

the orebody can be evaluated fully and mining plans made.

Part of the ore will be mined more profitably by open pit than

by underground methods.

The ore occurs mainly in two parallel zones within a peridotite

intrusion. These zones dip steeply/ are about 400 feet apart, and are each

as much as 70 feet thick. Folds affecting the ore may have resulted in

atten in places but faults and intrusive dykes are not expected

to affect mining adversely.

The possibilityof increasing the near surface ore reserves by

more than ( ) is slight, but sufficient known ore can be mined

profitably to justify bringing the property to production. Results of

drilling to a maximum depth of { )ft. have susggested that grade and

thickness decrease in depth, nevertheless it is likely that ore

persists in subparallel shoots elongated to a considerable depth

down the dip.

RECOMMENDATIONS

That arrangements with Lakemount Mines Ltd. be made whereby

AMAX is permitted to investigate the property for two years, and for

a subsequent eight years to retain an option to bring the property

into production.

That during the two year exploration period, AMAX evaluate

fully the nickel copper orebody, and investigate possibilties of

ore elsewhere on the property. DUPLICATE 'C " '

POOR QUALITY OP TO FOLLOW

Page 4: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- l -

C

opper, .

f//- 3 f -

00:iCLU8IO.\3

At the Lakemount property there is .an orebody - - j . j zillion : r.*

co:. . ..lir.tj 0.3656 copper, 0.5556 nickel and about U.S. Si.JC. ^:- ton precious

neta-s.

Exploration inclu:.:;.jj .5. XX) feet o:1 irilil.'.g: is required before

the orebody cai. be evaluated f^y and B.r.-ng plans made.

Part of tne ore will be i.-ned v.c-.-c profitably by open pit than by

^-.der ground methods. ,

The ore occurs mainly in two parallel zor.es ../.in a peridotite

-aion. These zones dip steeply, are about ^00 feet aperc, eui are each

. .1 B& ;o .ve* thick. Folds ofvectir.,-* tne ore may have resume* in atten-

. .i in . -.^.-^j iut faultf o.nc '.:.t:*usi\. dykes ere net sxpectea tc. af.\*;t

-.-.an .

.y br .

to c. .'o

... possibility of Increasing rhe near surface ere reser-.ss b;'

.i slight, but suffici /nt kiicvn ore can be ii;.oa oro;v.-;abl,

r.&ing the proper-,y -.o xoauction. Results of oil_r.^ ; . a JLS.

. X3 feet have i^t^s-ec. -. .at grtae and thickness c.cc.-ease in c

, it is likely ^..^.^ v.-c ;..c.-rsis^s in subparallel shoots elongat,

;ole depth

That arrangements with Lakemount Mines Ltd. be made whereby AMAX

to investigate tbe property for two years, and for a subsequent

.ght year.' to retain an option to bring the property into production.

..at during the two year exploration period, AXAX evel..-:te fully

e nickel -opper orebody, and investigate possibilities of ore elsewhere on

. .oper y.

:

Page 5: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 2 -

C STATISTICAL SUMMARY

Kane: Lakeoount Mines Limited

Location: Algoma district, tp. 29, range 21*,

Area: 2,2^0 acres.

Tenure of Mineral and surface rights; Absolute title

Distance free main highway : 1.5 niles

Distance from major power source ; 6 miles

Distance frca harbour : 15 ailes

Drilling completed : 76,000 fe-it

Strike length of ore : 2,600 feet

toxlmcn dip length : 600 feet

Explored depth from surface : 1,100 feet

Dip: Kaijily steep, but varying froc 45O S. (overturned) to 25O N.

Total ore potential : 2.5 million tons containing 0.3636 Cu and

Maxi.t.w3 tonnage, opes-pit potential 1*7 million tons containing 0.37^ Cu and

Waste to ore ratio - 9 .6 to l

Kaxiiium i.lope - ?*5O

Kaxiauo depth - 535 feet

0.55^

0.555&

Ni.

Ni.

Value of recoverable precious aetals

Flotation recovery - copper

- nickel

:e of I&.KC to be drained

ional drilling required

Cost of 2 year program

U.S. $l per ton of ore

13*1 million cu. feet.

15,000 feet

U.S. 4i75,000.

IJ

Page 6: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 3 - '

C HISTORY

The discovery of nickel-copper mineralization on what is now the

Lakemount Property was first reported by E.Rt Allen in 1923* Between 19^3

and 1957 this part of the property was investigated first by a magnetometer

survey and then by 76,000 feet of drilling. During this time development of

the nickel-copper body and mineralized quartz veins on the property was

recommended by several geologists, but poor access and doubts about.metal

content, rock strength, and dilution discouraged this step.

Additional historical notes may be found in Appendix 1.

JUO) SITUATIONt

Lakemount .Mines Limited acquired absolute title from the Algoma*

Central and Hudson Bay Railway to mineral end surface rights on 1,920 acres

of ground known as parcel 2017, lease J&70, and an adjoining 320 acres in eight

ciaiss numbered 3560-61-62-63 and 5072-73-7^-75-

Highway 101 and the branch toad to Hawk Junction traverse the property

abc,;: a mile south of the nickel-copper body. Surface rights to about 300 fo*fi

straddling the former were sold to the Ontario government, and control of surface

rights to the latter may be exercised by ihe A.C. and H.B. Railway.

North, west and southwest of the Lakemounc. Property the land is held

by the Algoaa Steel Corporation who are reportedly bringing the Ruth and Lucy

i/c r. ore bodies into production. East and southeast the ground is open except

/ o.* an additional group of claims held by Lakemount Mines Limited.

LOCATION, THAaSPCRT and POWER

The property is located in Township 28, range 2U, district of Algoca,

Ontario.

Page 7: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

C

- If -

Elbow Lake, the site of the nickel-copper body can be reached by

walking 1-1/2 miles on an old tractor trail that leaves the Wawa-Hawk Junction

road near its junction with Highway 101. Assuming that this trail will be

improved to take ordinary vehicles, road distances will be east to Hawk

Junction 6 miles, southwest to Wawa 9 miles, and to Michipicoten, the nearest

deepwater port on Lake Superior, 15 miles.

Power is readily available from the Great Lakes Power Company's

transmission lines either at Hawk Junction (33,000 volt), or Jamestown

(U4,000 volt) which is ten miles west of the property.

GEOLOGY

The most recent geological map is Pl&t, Michipicoten Area, published

ir. preliminary form on a scale of two miles equals one inch, by the Ontario

lyepartment of Mines in 1963. On a regional scale the map shows northeasterly

a..d easterly trending iron formations within volcanic and sedimentary rocks,

segmented by faults that trend mainly northeast, north or north-northwest.

Subjacent intrusive granite, porphyry and syenite all but surround the older

rock* and are exposed within their boundary at several places.

Tee Lakemount nickel-copper mineralization occurs in a peridotite-4

gabbro mass bounded in plan by volcanic rocks into which it was intruded, and

also to the northwest by a small granite plug that is probably part of the

cain acid intrusion exposed about a quarter nile farther east. The peridotite*

intrusion is roughly lenboid in plan being elongatea 7,000 feet parallel to

z.'.i regional east-west strike, and measuring 1,500 feet across the centre.

The main area of interest is the eastern half of the southern

bcurxbry of the peridotite. In this area thorough investigation by drilling

its .-evealed a foiu, analgous to a pivital or hinge fault, whereby the formations

Page 8: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 5 -

are rotated relatively on either side of a vertically dipping north-south zone

cutting the surface near the western shore of Elbow Lake, and about an axis

perpendicular to this zone near the peridotite contact about 600 feet below

the surface. East of the hinge zone the peridotite contact dips normally .

northwards at an average of 68O at surface, flattening to about 250 at a depth

of 700 feet. West of the hinge zone the contact is overturned dipping south

frcm surface at an .average of 1*50, vertically at a depth of 500 feet, and at

a depth of 700 feet normally northwards at about 60O. Folds related to the

hinge structure plunge down the dip. East of the hinge zone there are no folds

in the near surface part of the contact, but one fold centred on section 6l8E

is thought to becone increasingly evident at depths greater than 600 feet.

West of the hinge zone^in the near surface part of the contact there are three

large folas that die out at a depth of about 500 feet. The eastern end of the

peridotite has been investigated by drilling on both north and south contacts,

and here a carinate structure plunging steeply west is indicated.

Within the property there are several northwesterly trending diabase

dykes one of which cuts the mineralized peridotite in the western part of the

area of interest. It dips southwest at 63O and is 30 feet thick. There are

also sisall dykes of brown lamprophyre that are reported to be the youngest

rocks in the area.**

The lithology of the peridotite is reported to be variable. Some

of the fresh cores contain abundant clino- and ortho-pyroxene, others are rich

in amphibole, end still others are gabbroic. Alteration to serpentine, talc

and carbonate is widespread.

V

Page 9: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

(

- 6 -t

MINERALIZATION

The mineral occurrences napped on the property were assigned

numerals and letters which serve to identify them. The original "Vein F"

is the site of discovery of the copper-nickel mineralization that is the

subject of this report.

Nickel values have been reported from the peridotite only, and

here pentlandite is the host mineral, chalcopyrite is the only frequent

copper mineral and both are accompanied by pyrrhotite and pyrite. In country

rock near to the peridotite heavy pyrrhotite mineralization has been noted at

several places, t ' rt nickel is not present in significant amounts. Two .*

persistent zor.es of nickel-copper concentration occur in the peridotite. One

is close to the southern contact and the other is parallel to it about ^00t

feet to the north. In both these zones the grade and thickness of mineraliz

ation east of the binge zone, is thought to be better near surface than in

depth so far explored, whereas farther west mineralization is often absent

near surface. Mineralization intersected outside of these zones is thought

to be patchy and cannot be proved to occur in distinct zones.

The sulphide minerals ere moderately coarsely disseminated and

clustered into pea-sized or larger aggregates. One previous writer observed

^.h&t the better nickel values are usually found in rock containing these

'-igregates. Veins and stringers have been observed and some slip-planes in

zr.e overturned part of the body are mineralized. .

The showings elsewhere on the property that have been reported

-;-e shown en top l, and are as follows:

.-lolybdenite l - Ssall crystals of molybdenite and chalcopyrite in quartz

-wringers in a porphyry or porphyritic rhyolite.

Page 10: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

c. 7 .

Molybdenite 2 - Snail crystals of molybdenite and chalcopyrite in minute

fractures in porphyry.

Vein l - A quartz vein striking NSJ^ and dipping gently south, is about 1200

feet long and t to 20 feet vide. It and brecciated vail rock adjoining it ere

mineralized with pyrrhotite, chalcopyrite, galena, sphalerite, pyrite, native

copper, gold and silver. Assay information indicates erratic values but overall

grade is likely to exceed 0.06 oz/ton Au, 0.5 oz/ton Ag, 0.75J& Cu, and some leadi' ' '

and zinc will be recoverable. Three short drill holes demonstrated the shallow

dip to the south.

Vein A - A mineralized quartz vein 13 inches vide strikes NoO^ and dips steeply

south.

Veins Bj C and H - A quartz vein and breccia zone 5 to 10 feet vide and at least

1,000 feet long, is mineralized vith pyrrhotite, pyrite, chalcopyrite, galena and

sphalerite. It strikes N25OE and dips vertically to steeply south. One sample

chipped front a sphalerite rich zone and representing 8 feet vidth assayed 0.01

oz/ton Au, 0.22 oz/ton Ag and 6.6650 Zn. A basic rock rich in pyrrhotite is

reported just east of Vein C.

Vfcir. D - A quartz vein over 1,000 feet long and very thin to 3 feet vide strikes

. -W ^nd dips 6o9N. Mineralization consists of pyrite, pyrrhotite and chalcopyrite.

.... 2 - Kearly massive sulphides occur at a porphyry-greenstone contact (possibly

.r. c, ouge glacial boulder). Mineralization consists of galena, sphalerite, pyrite,

--.copyrite, pyrrhotite, and arsenopyrite, and may grade as much as ty Cu, 3-5/a

...., o oz/ton Ag, and 0.02 oz/ton Au. One drill hole angled under the deposit

^p0 frora the vest failed tc intersect mineralization.

Vein F - This is the copper-nickel mineralized zone, 50 feet wide at this point.

Vein G - A nineralizea contact zone between porphyry and peridotite. A sample

contained 2.56/6 Cu and 0.0^ oz/ton Au.

Vein J - A silicified contact zone oetween porphyry and mineralized greenstone.

Page 11: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

c- 8 -

Pyrite, chalcopyrite, galena, and sphalerite are present. One report describes

the mineralization as chalcopyrite and pyrrhotite, end en assay of 0.98^ Cu

end 0.01 oz/ton Au vas obtained.

ORE RESERVES

The ore reserves vere calculated on sections selected to best fit the

drill hole intersections as recorded on their logs. This involved drawing

sections with different orientation on either side of a dividing line.

Ore calculations, vere made assuming the following:

1. Grades and thicknesses of ore blocks extend midway between drill holes, and

50 feet in the dip direction unless adjoining sections indicate otherwise.

2. Strike length of an ore block is the distance between median sections.

3. One ton of ore has a volume of 11.5 cu. feet. (Based on 8.0. determinations

of 2.71 end 2.93')..

k. Ore intersections in drill holes are those of 10 feet per cent or greater,

calculated on the formula T.T. x (Cu * 2 Mi) where T .T* is true thickness

and Cu end Ni are percentages of the metals, and where the bracketed multiple

is 0-9 or core. (See Appendix 2).

Although at this stage the entire orebody should be considered as an

underground proposition, tbe writer J.B of the opinion that part or the body will

be mined in. en open pit nore profitably than underground. To this end a pit to

retrieve the maximum amount of ore is shewn on the attached plan and sections.

This pit has a maximum slope of ^5O, maximum depth of 535 feet beneath the Sunrise

Lake surface chosen as datum, and was designed to keep the stripping ratio below

10 to 1.

It is emphasized that this pit design is a guide whereby a more practice]

and more profitable design is likely to be developed at a future date. Consisting

e s it may of two bands of mineralization wider and richer near surface than in

depth, the ore may complot to a small but very attractive open pit proposition

vben reliable data are assembled.

The results of the ore reserve calculation are summarized below, and

are fully tabulated in Appendix 6 (bound separately).

Page 12: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

c Underground

Proved Indicated

Possible

Total

Open Pit

Proved Indicated

Possible

Total

Combined

Proved,

Indicated

Possible

Total

- 9-

Tons # Cu

0.36 million 0.330.33 0.380.69 0.350.12 0.25

0.81 0.3!*

1.66

1.29

0.86205

0.31*

0.37

0.36

0.1*0 0.38

0.25

0.36

0.530.620.57 0.1*2

0.55

0.93Q.531.1*60.22

0.370.1*20.39 0.25

0.560.570.57 0.1*6

0.55

0.55

0.590.57

0.1*5

0.55

T ne vaste was calculated together vita ore to give a total pit

volune and sass. Tbis calculation is fully tabulated in Appendix 3, and

summarized below:

Volume (cu.ft.) Mass (tons^

205.5 minion 17.9 million

Tons Ore Tons overburden Stripping Ratio

18.3 : l

U.2 : l

.us^e 4- ore

Proved

Pro/ed 4- Indicated

0.93 minion 17.0 minion

1.U6 " 16.4 n

Proved * Indicated * Possible 1.68 16.2 9.6 :

Page 13: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

-10-

PRECIOUS ME?TALS

Gold, silver, platinum and palladium are present in the copper

nickel ore. Actual content is difficult to estimate because assay results

of tne small quantities are unreliable. From available data tabulated in-

Appendix U it can be seen that the best estimates of precious metal value

ere $1.^0 and Sl.97 per ton. Assuming $1.70 value and 6056 recovery it can

be expected that precious metals will be worth U.S. Sl.OO per ton.

ORE DRESSING TESTS

Concentration tests of the copper-nickel ore were made in 1928,

19W* and 1952, the last being a thorough investigation by Lakefield Research

Ltd. From these reports, copies of which are attached as Appendix 5,t

indicated recoveries ere:

Copper 68 Nickel 75*

Precious Metals 60#

WATER PROBLEMS

Elbow Lake will have to be drained whether en open pit or under

ground operation is chosen. The lake floor is uncharted and assumed in this

calculation to slope at 20O from the margin to a level floor 35 feet beneath

the surface, which in turn has an assumed elevation of 1010 feet, 10 feet

above the surface of Sunrise Lake, the chosen datum.

The area of Elbow Lake is 635,000 square feet and the volume 13.1

million cu.feet. Draining probably will be accomplished best by pumping after

building a daa on the creek Joining the two lakes, to prevent backflow from

Sunrise Lake. It is estimated that a 10 or 12 inch, 50 to 100 h.p. pump

could drain the lake in less than a month.

Page 14: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

-11 -EXPLORATION

Cores from previously drilled holes have not been assayed system

atically and economic cutoffs rarely established. There has also been little

continued system in locating drill holes and this coupled with inadequate

surveying of these holes hinders reliable mine planning.

The near surface parts of the ore zones have bee poorly explored.

There are indications that the two main zones are richer and vider near

surface than in depth explored so far, end it is possible that other zones

will be outlined within open pit range of surface. It is anticipated that with

additional drill hole information it will be possible to design an open pit

vith similar tonnage, less depth, improved grade end improved stripping ratio

to that described in this report.*

The depth potential has been explored to a little over 1000 feet,

and one of the deeper holes (No. 31*0 intersected a true thickness of 39*3

feet of mineralized peridotite containing 0.22# copper and O .kSft nickel. There

is every reason to suspect that the peridotite body persists to great depth,

end ore is likely to be present in sub-parallel shoots elongated down the dip.

The ore potential r.long strike has be-;n largely investigated by

drilling end except for section 2573W where drill hole 26 intersected mineral

ization averaging 0.3^ copper end 0.6856 nickel over a true width of 22.6 feet,

there were no encouraging intersections.

In the parts of the property surrounding the nickel-copper orebody

search should be made for other ultrabasic bodies that may be mineralized, and

the known mineral occurrences should be investigated. The ground northwest of

Sunrise Lake where drill holes l and 2 intersected nickel mineralization should

be carefully considered for exploratory geophysics and drilling. No provision

is cade for this work at' present.

Page 15: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

C- 12 -

Exploratory vork proposed is for the neighbourhood of the known

nickel-copper ore. Provided that satisfactory agreement between new and old

results is obtained, it is estimated that 5,000 feet of drilling will enable

the feasibility of an open pit operation to be studied. Assessment of the#

underground possibilities without probing for deep extensions will require

about 10,000 feet of drilling, making 15,000 feet in all.

ESTIMATE OF COSTS

It is enpha sized that the Lakemount deposit is considered to have

excellent development potential, but cannot at this stage be regarded as a

mine awaiting development. There are many obvious factors that could add to

or detract fron the value of the body and affect the design of an open pit,s

and even after checking metal distribution, cutoffs and rock strength by

drilling; milling, flotation and smelting recoveries will have to be evaluated.

It is reasonable to assume that capital costs covering exploration,

surface installations including a 1000-1500 ton/day concentrator and mill,

power installations, roads, equipment, and draining of Elbow Lake, would

exceed fc3 million. It is also reasonable, to assume that ^20 million worth ofC l -C,**.* n y l ** - -T v . ey-**- ?-*J . netals can be recovered f rea an open pit mine at a total cost of $13 million.

It is suggested that an open pit operation similar to that proposed could be

conducted for three to six years under terms profitable to AMAX, and that

underground mining could be considered a separate venture against which the

cost of surface installations will not need to be considered.

It is expected that Lakemount Mines Limited will agree to a two

year option for paysent of $5,000 p. a. and that a subsequent option can be

arranged for annual payments escalating by ̂ 2,000 p. a. from an initial $10,000

p. a. to a maximum of $25,000 p. a. If a mine is in production the annual payments

7c

Page 16: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

(- 13 -

vould be stabilized at ^15*000 p.a. No other payments would be made until

AMAX has recovered its investment * 15S& interest, whereafter net profits

would be shared on the basis 50 to 70J& AMAX, 30 to 50J& to Lakemount M.L.

It is important to remember the special conditions of cvnershl

that Lakemount agreed with the A.C. and H.B. Railway* takemount have

absolute title to the ground, but royalties on mining base metals will be

paid to the A.C. and H.B. Railway at tta rate, 2J& of the first million dollars

market value, 3# between one and four million end *# thereafter each year on

the year's production. These terms are very much less favourable than terms

written more recently to lessors of tracts of A.C. and H.B. property, and it

is possible that a constant 2# of net profits can be negotiated.

Exploration,costs including 15,000 feet of drilling, assaying,

metallurgical testing and surveying of the property are expected to amount

to U.S. $75>000 over two years.

J. A. KcGregor

Page 17: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

Appendix l.

HISTORICAL SUMMARY (available data only)

1926

1927

1928

1929

1939

l

Original staking in Tovnsbip 28, ronge 2k, Michipicoten Area, follcving a discovery by J* H* Teare on a property known as Andargo,

B. K. Bond acquired 12 square miles of prospecting rights and from this selected 3 square miles wbich the Algoma Central Railway Co. finally transferred to him in 1929.

M. W. Sumnerbayes and E.R. Allen reported separately to Engineers Holding Co. of Michipicoten, vho are assumed to have been in association with Bond. Attention vas given mainly to quartz-gold-copper-lead-zinc veins, but Allen specially mentioned the nickel-copper mineralization.

Ore dressing report No. 318, 1929 by Ont. Dept. of Mines. Tests made on a 50 Ib. j sample submitted by Allen indicated good recoveries of copper, nickel, gold, silver and platinoids. .

0*w - McLeod reported on the property and recommended detailed mapping. j

Corinth mines acquired the property and commissioned a report by W. B. Mather. Interest in molybdenum due to adjoining molybdenite property to the north (Regnery Ketals) prompted search for the mineral and two discoveries were made. Mather introduced identification letters for the mineral occurrences which were used by later writers. He recommended a great deal of work, but not specifically at the copper-nickel showing.

*

Replying to enquiries by the Wor Metals Advisory Committee, Mather and Summerhayes separately recccnmended prospecting and developing the lead-zinc veins. A pre liminary report for the Ont. Dept. of Mines was written by E. S. Moore. Evidently unfamiliar with all the previous work he suggested that nickel might be present, but his reconaendations concerned additional work on the lead-zinc veins. At about this tine the property was acquired from Bond by Lakemount Syndicate, subsequently becoming Lakemount Mines Ltd., and additional ground was staked.

A comprehensive report by Douglas S. Baird followed the drilling of X-Ray holes 5 to 10, and deeper holes 11 to 16. The possibility of more than one ore zore ves recognized end a suggestion made that 1.5 million tons of copper-nickel ore was present. In a supplementary report he estimated ^00 ft. x 50 ft. x Uo ft. deep s 80,000 tons of ore readily available by open cut northeast, of Elbow Lake.

Drilling by Lakeaount continued and an Askania magnetometer survey was done by H. Lunenberg, assisted by B. T. Wilson and R. Holies. Drilling was reccrcraended at several highs within the general high positive coinciding with the peridotite. H. A. Timains Exploration (Ontario) Ltd. optioned the property for a year and continued drilling under the direction of John Armstrong. Armstrong submitted two 200 Ib. sacplee to the Ont. Dept. of Mines, Ottawa for flotation tests. I-avourable results were obtained on a head sample containing 1.08?o Ki, 0.5^ Cu, j. 30 oz/ton Ag and a trace of gold.

Completion of drill holes to No. 6U, approximately 28,000 feet to this time.

19!*6 S.S. Moore in Ont. Dept. of Mines v.55; pt.!*, reviewed the property and concluded that mineralization could not be profitably mined under conditions then.

Page 18: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 2 -

1951

1952

1953

1956-

1959

1962

1967

Optioned by Kclore Mines Ltd, (changed to New Kelore Mines Ltd. la 1953). Drilling started tinder the supervision of J.O* McCoabe assisted by A. Eldridge.

L.R. Simard evaluated the property for Kelore Mines Limited. He recommended additional drilling on both contacts, and extension of the meg survey over the rest of the property. Ee drev attention to the unexplored nickel intersections in drill holes XR1 and 2. Ho estimated 1.4 million tons of ore at bet l r than 0.55* Cu and 0.5# Ni. Lakefield Research did flotation tests with very satis factory results. McConbe, supported by Stanley Davidson, vrote en enthusiastic report in which he estimated 5 Billion tons to a depth of 800 feet, at a grade of 0.32# Cu, 0.51# Ni. The Kelore drilling to this stage included holes 101 to 136 and amounted to a little over 19,000 feet.

Optioned by Ventures Ltd. (absorbed by Falconbridge in 19&2), vho drilled holes 201 to 231 amounting to a little over 17,000 feet. C.P. Cockshutt reported on this work damning the property as having no depth potential, difficult mining and only 0.5 million tons of ore grade material. W.C. Martin enlarged the reserve figure to 0.9 million tons containing O.Ul# Cu and 0.60# Ni, but he considered dilution a major problem and ruled the body uneconomic.

New Kelore drilled holes 301 to 316 amounting to over 12,000 feet, bringing the total drilled at the property tp over 76,000 feet. Several reports by C. S. Johnston followed in which the reserves were estimated at 2 million tons contain ing 0.656 Ni and O.U# Cu. Shaft sinking in order to do depth exploration was recommended. Tenders for this work were submitted, but were higher than expected end the shaft was never sunk. At about this time McPhar did an E.M. survey over the property with the discovery that several of the old lead-zinc veins were moderately strong conductors. Two holes were recommended but never drilled.Soil sampling in 1957 is reported to have given an anomaly over one of the known mineralized zones, but the maps are no longer available.

The data vas reviewed for S.W. potash by R.W. Hodder. He estimated 0.5 million tons containing O .hfy Cu end 0.75& Ni with possibly an additional 0.5 million 15ns it similar grtds. He did not rev-oouiend any action.

T.N. Macauley prepared a report for Algoma Central Railway. potential, but did not recommend any work at that time.

He recognized the

Evaluation for AMAX by J.A. McGregor. 2.5 million tons containing 0.35# Cu and 0-55# Ni estimated of which 1.7 million tons could be considered an open pit proposition. Acquisition and development recommended.

Page 19: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

**le No.

SIS2S3S4

XR-A

XR-B

XR-C

XR-D

XR-E

XR-F

XR-G

XR-H

.R- 1

XR-J

XR-X

12

566789

101112

1314

151617

18192021

From,

6.522.0

21.055.0

75.0140.0

85.0

63.0

40.070.0

35.0

90.0

20.0

85.0

58.060.098.5

40.047.0

.J416.0487.0195.0425.0560.0

171.0231.0330.0160.0534.5280.0

SUMMARY

To

11.050.0

37.560.0

90.0145.0

95.0

75.0

55.075.0

70.0

135.0' ,

80.0

100.0

60.061.099.25

45.052.0

395.0441.5522.5204.0450.0568.0

231.0238.0360.0169.5584.0327.5

OF ASSAYED SECTIONS OF DRILL

Intersected Thickness

Not assayedM H

M H

H H

4.528.0

16.55.0

15.05.0

10.0

12.0

15.05.0

35.0

45.0

60.0

15.0

Not assayed

2.01.00.75

Not assayed5.05.0

Not assayedH il

57.025.535.59.0

25.06.0

Not drilled60.07.030.09.5

49.547.5

Abandoned

True Thickness

(T.T.)

4.64.7

52.514.520.39.015.05.6

48.45.420.89.49.5

45.2

HOLES

Cu.

0.450.32

0.52nil

0.270.17

0.23

0.16

0.310.42

0.16

0.24

0.41

0.25

nil0.320.05

0.920.54

1.110.320.290.400.261.18

0.190.360.300.320.400.34

".;'- :'' Appendix' J'^i^ll g. : 1^*'B.

% Feet i S Ni. T.T. X B

0.660.42

0.480.55

0.590.32

0.37

0.37

0.280.30

0.46

0.46

0.77

0.57

0.801.620.99

1.290.94

0.500.580.360.500.320.41

0.420.720.930.480.410.54

(cu -r 2 m) B) ' B) K) K) * ' m

l ll l

i t1 1) -Location*) Unknown m) K

i) I

) K

)

1611

1112221131410

501047121265

Page 20: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

. 2 -

SUMMARY OF ASSAYED SECTIONS OF DRILL HOLES

' ' 'le No.

2223, 24, 25

2627,28,29,30

31

32' 33

343536

37

3839

40

41424344

454647

48

49

5051525354

55 to64 incl.

101

t

From

159.0

660.0

650.5814.0

90.0

272.0141.7165.0305.5197 8387.0335.0420.0761.0221.0250.0225.0220.0

295.0330.0400.0675.0605.0175.0435.0595.0235,0305.0590.0675.0335.0360.0415.0495.0240.0325.0

217.8

206.0240.0324.0478.0755.0785.0

To

169.0

685.0

668.0824.5

102.0

278.0144.0170.0375.0205.0395.0345.0425.0770.0225.0270.0235.0230.0

305.0375.0405.0680.0667.0205.0436.0600.0240.0320.0600.0685.0345.0385.0425.05C5.0260.0334.0

225.0

211.0254.0352.0435.0760.0795.0

Intersected Thickness

10.0Not assayed '

25.0Not assayed

17.510.5

Not assayed12.0

Not assayed6.02.35.0

69.57.28.010.05.09.04.0

20.010.010.0

Not assayed10.045.05.05.0

62.030.01.05.05.0

15.010.010.010.025.010.010.020.09.0

Not assayed7.4

Not assayed

5.014. C23.07.05.0

10.0

True Thickness

(T.T.)

2.6

22.6

7.47.2

9. 9'

4.62.35.0

69.07.07.8??73.5

17.310.0

10.045.05.05.059.026.2(vein.)4.64.714.19.79.77.1

17.77.17.1 ?19.9 ??

5.013.927.97.05.0

10.0

CU.

0.22*

0.34

0.450.20

0.16

0.320.510.340.400.180.170.050.220.240.270.290.230.09

0.110.230.14 .

. 0.090'.380.053.86C. 220.230.150.180.280.220.190.150.250.100.19

0.07

0.050.050.060.160.200.28

Ni..

0.56

0.68

0.790.36

0.51

0.230.210.220.490.550.410.240.460.340.460.450.300.22

0.610.550.550.470.530.450.300.310.660.380.440.430.420.510.450.590.400.38

0.22

0.500.570.480.480.530.42

Feet t i T.T. X K

(CU -f 2 Ni)I

4 I

36 I

. 15 l7 1

12 1K5 l2 14 1

95 19 1Q 1

'4 121

-606S

8525547 1

A3

10118

2181113

-

517298611

Page 21: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 3 -

SUtWARY OF ASSAYED SECTIONS O" DRILL HOLES

^le No.

102103 10U 105106107

108

109110in112

113111*

115

16

117115

119120JUil

122123

12^125126

127

123129

130

31-3213313*135

From ToIntersectC'.' True Thickness Thickness Cu. Ni.

(T.T.) Sparse mineralization

Abandoned Sparse mineralization

Abandoned

200.0275-0220.0252.0261.0320.0323.0395.0265.0600.0320.0355.01*71.01*97.0275.0333.01*25.0500.0520.0292.0530.0

70.0630.01*7.0511.0

i; 60.01*75.0U80.0606.0677.0510.0565.0lO^.O1462.0196.0260.0250.0365.079-0

129.035-. 0J '1^.0120.0123.0

210.0290.0230.0256.0236.0325.0333.01*25.0310.0627.0330.0263.0*75.0537-0295.0333.01^60.0510.05*9.0297.0565.0

155-0635.01^52.053^-0

1*65-0^95-01*90.0616.0632.0525.0610.0LI!: .^

U72.0203.0265.0255.0"37" Oj 's . J

y x . *j15^.0lO-'-.O1*19.01-0.0133.0

Kot drilled10.015.010.0i*.o5.05.0

10.030.0025.0 .27.010.033.0i*.o1*0.020.05-0

- 55.010.029.0 .5.o

35.0Kot assayed

85.05.05-0

23-0Kot assayed

5-020.010.010.05-0

15.025-010.0 )10.0 )5.05-05-0

10.020.05.0

10.05- c

20.010.0

10.015.010.0k,05.05.09-9

28.120.521.68.7

28.63-5

35.613.6

3.1*1*2.19.5

27*5-0

31*. 2

67.91*.82.7

12.5

3-5lU.l5.01*.76.3

11.710'5-05-05-05-7

16.0k.O5.02.515.59.4

0.200.560.170.520.180.250.200.670.250.250.290.770.370.1*8 .0.230.550.1*60.220.560.120.87

. 0.250.200.350.13

0-370.210.300.170.1*1*0.1*30.5*0.320.660.300.330.170.290.220.2U0.160.150.350.35

0.510.26O.Uo0.670.670.30O.U30.630.1*30.370.380.750.300.1*60.360.21*0.620.310.37O.U81.120.520.310.360.1*00.260.500.1*90.600.380.921.000.72 )1.30 )0.580.670.390.590.511.630.1*00.1*60.1*20.37

Feet % ~ T.T. X

(Cu * 2.NJL)

121610.784

n I542321

965

35014

472

836

5106

8843

12

317

613

61430

2C7958

2014

53

1810

Assay results lost

^93-0 523.0 Kot assay30.0

edll*.0 0.23 0.1*1 15

Page 22: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

——— .i . ..

. - - -, 4 I |l |ll M

: ' J ' - 4 - ' ' ——-

SUMMARY OF ASSAYED SECTIONS OF DRILL HOLES

*le No

136

201,202203

204 to208 incl

209210

211212213214215

216,217.218

219,220221

222,223,225226'27

228.

229

?30231

301302

303304

305

306307-•03

309,310311

From

-

. ^50.0

.369-0181.0 217.0

305.0204.0504.5321.0572.0

473.0532.0

600.0221*

470.0324.0

' 282.2559-0480.11*99.05^2.0530.0573.0665. c

1*2.0115.0177.0

550.0563.0

641.5666.5162.0267.0566.5633-0356.0271.0717-0

1*0.01043.0

To

460.0

379-0189.2 222.0

312.0214.0509.0325.0582.0

487.0547.0

607.0

526.0332.0283.5563.5j|fi|| 2504.0560.2559-0568.0676052.0

165.0165.5

560.0600.0

651.5701.5173.0275-0571.5676.0367.0279-5732.050.0

1061*. o

Intersected True Thickness Thickness

(T.T.)Assay results lost

Not assayed10.0 6.4 t

Not assayed '10.0 ?8.2 3.7 5.0 2.3

Not assayed7-0 3-5

10.0 8.24.5 3-54.0 3-9

10.0 9.8Not assayed

9.0 5.615.0 9.6

Not assayed* . 7.0 4.9

Not assayed56.0 55.68.0 2.11.3 . Vein4.5 ' 4.44.1 2.05-0 2.5

16.2 9.129.0 28.715.0 li*. 66.0 5.2

10.0 8.150.0 1*0.58.5 6.9

Not assayed10.0 9.417.0 . 16.0

Not assayed10.0 9.235.0 32.2ii.o 9.28.0 6.75.0 1*.6

43.0 1*1.59-0 7.U6.? 2.2?

15.0 n.310.0 6.7?21.0 20.7

AbandonedNot assayed

Cu.

0.38

0.240.01 0.22

0.230.240.340.170.250.220.27

0.22

0.290.24

12.051.440.45

. 0.190.300.320.45C. 250.450.40o.#

0.350.55

0.150.370.240.230.220.330.290.370.470.200.52

% Feet * Ni. T.T. x

(pu -f 2 Ni)

jt

0.32

0.3^0.55 0.43

0.340.4o0.500.370.380.300.350.28

0.33

7

4 3

3954

1059

4

530.57 ! 30.4lo.4i ; 100.16 20.44 30.46 ; li0.61 : 441.40 i 480.2? : 40.670.66'0.86

0.60

157015

150.68 31

0.36 80.59 500.48 110.56 90.50 60.4l 480.52 100.66 40.47 170.32 60.97 51

Page 23: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

t '"

- 5 -

SUMMARY OF ASSAYED SECTIONS OP DRILL HOLES

•*le No.

31231331^315

316

From

585 .0

To

595-0

Intersected Thickness

10.0

True Thickness

(T.T.)

? 0

Cu.

•30

Ni.Feet iT.T. X

(Cu * 2

O.U31

Not assayed922991

'1021*

.0

.0

.0

970.995.

00

1035.0

U8.0U.O11.0

' 39.33A9-3

000

•33.23.22

0.5U 550.60 sO.U9 ' li

Not assayed

Page 24: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

Appendix k .

PRECIOUS METALS SUMMARY

Oz. per tonDrill Hole

7

8

11

11

12

13

14

26

44

45

51

19

31

45

47

50

101

110

111

112

From

40

47

338348360385338

425487

172

410 560

660

350

625

665

535

805

605

550

475

240319

376395

270570

315335355

To

45

52

348360385395395

447.5522.5

220

450 ) 568 )

685

400

667

750

584

820

650

625

505

253352

395428

310627

335355383

Width

5

5

1012251057

) 6Q}

48

48

25

50

42

85

49

15

45

75

30

1833

1933

4057

202028

AU.

O.'Ol' 0.06

0.060.04Tr.

Tr.

Tr.

Tr.

.

\

0.005

0.003

0.004

0.002

0.007

NilNil

0.0020.001

Tr.NilTr.

Ag.

0.17

0.17

0.14

0.10

0.11

0.200.16

0.1220.100

Tr.NilTr.

Pt.

0.06

Tr.

0.050.050.050.04

0.02

0.01

0.02

Nil

Nil

Nil

Nil

0.006

0.002

0.003

0.001

0.015

Tr.0.009

0.0020.008

0.003Tr.0.021

Pd.

0.100.100.30Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

0.006

0.002

0.002

0.001

0.013

Tr.0.006

Tr.0.003

0.002Tr.0.013

Pt. Assays By

Not recorded 1943

H M

Private at Trail, B.C. 1944It H N N N

M II M II H

Ledoux fi Co., New York, 1943

M II II H H (f

II II tt MN N

II H H M tt It

Thomas Keys 6 Sons, Toronto,1952

HUN M

II II H N

II H M M

J. W. N. Bell Laboratories,Haileybury, 1952

M

•1

M

H

) j. H. N. Bell Laboratories,) Haileybury, 1952

II

II

II

II

II

113 499 534 35 0.001 0.221 0.001 Tr.

Page 25: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

s

k

Drill Hole Froa

114

115

116

308

Averages

Approx .

110

112

113

114

115

116

261 445

520

530

1043

based on

value $ U

400 420

320 373

499514

455 470

510

510 525

To

295 480

549

565

1064

Bell

.S.

405 425

330 378

504 519

460 475

520

515 530

. 2 -

Oz. per tonWidth Au. Ag. Pt. Pd. Pt. Assays By

34 0.003 0.134 0.012 0.009 ) J. W. N. Bell Laboratories, 35 ' 0.001 0.12 0.003 Tr. ) Haileybury, 1952

29 0.002 0.123 0.016 0.009 "

35 0.004 0.224 0.026 0.010 H

21 0.019 Not recorded 1957

Laboratories only s -

0.002 0.16 0.0075 0.0045 0.08 0.32 0.82 0.18

m5 ' "

5

10 5

*

5 * . -5 - '

5 5

10

5 5

Combined

Approx. value 5 U.S.

0.015 0.235 0.005 0.010 Wakefield Research

0.57 0.47 0.55 0.38

Page 26: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

Appendix S.

copyOre Dressing Report No. 318, 1929.

Concentration of Copper- Nickel bearing gabbro from Engineers Holdings*

- 2 bags - 50 Ibs. from R.N. Bonf, January 8th, 1929.

- The material consisted of a schisted, darX, weathered gabbro, containing finely disseminated sulphides of copper and iron.

- Purpose: The shipment was forwarded vith request that concentration tests be carried out to determine the most suitable method of treatment.

Analysis of Representative Head Samples.

Cu....................Ni....................ZR....................Au. . . . . . . . . . . . . . . . . . . . .0.01 ozAg.... ................ 0.25 ozPlatinoids: Chiefly palladium. . . . . . . . . . . . . 0.06 oz

Test 1:

Product

Material crushed -Ikground 9# -150

Flotation:soad ash to ball mill - 3 Ibs per tonIn cells:Pot. xanthate .10 Ibs. per tonPine Oil - .03 Ibs. per ton

Weight ASSAY PER CEhT OF VALUE

Platin- Cu Hi Au Ag oids Cu Ni Au

•Platin oids

Concentrate 12.76 8.97 3-H -O** 1.26 97.90 76.U9 59-3 66.5 33.9

Tailing 87.2^ 0.03 0.1** .00** 0.0^ O .Oh 2 .02 23.51 *K).7 13.5 66.1

Proa the above tests it appears that a bulk flotation of the finely ground materiel yields high recoveries of copper end a large per centage of the nickel in the ore. The assays of the products of Test No.l shov that major amounts of precious metals, vill^-be^cpnj.

concer.trate. Clea"ning~aTTd~ cu-.cer,tral'e~w"ill^doubtless raise he~graaTe7~and yield a product acceptable for snelting purposes.

Page 27: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

Appendix 5. (2)

ORE DRESSING REPORT 1944

C

l \

A bulk sample fron the exposed section of "F rt zone, comprising two lots of approximately 200 Ibs. each was forwarded to Ottawa by John Armstrong for preliminary tests, with the following results: (June,1944)

Average (2)Lot No.l Lot No.2 Lot No.l Lot No.2

1.08J5

Cu..0.( Zn............ Nil"Fo............l2.05tfS............. 5.SO/5As...........* NilAu............ Tr.Ag............ .30 oz.

Preliminary flotation tecto indicated that1 * * . *t

the copper appeared to float quite readily, butdetails o.C control would h?.ve to be wcrked out forthe nickel flotation.

Page 28: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

ORE DRESSING REPORT 1952Appendix B. (3)

c CONCENTRATION OF K1CXEL-COPPER ORB

submitted by

Mr. 'JOi-M G. McOOMDB

.Sault Ste. Kario. Ontario

Introduction;

Six samples of split dianond drill core were submitted on July 29, 1952, by Jto. John G* McCorobe, Con sulting Geologist, Sault Ste. ?-!arie, Ontario. Tho samples were reported to be from a property under investigation in the Michipicoten area of Northern Ontario and v/ere marked as follows;

Group D.P.H. No. Sample Kos.

363 k 3 72 * 375, 376 fe

386403 fc 406 451 fc 454 460 b. 461474 fc 477

12

34l

110112

113114115116

. 400' to 405', 420' to 425*320' to 330', 373* to 373' 499* to 504', 514* to 519f510' to 520'510' to 515', 525' to 530*^1

Object of the Investigation;

It vao requested thtt the cubraittod oro be tooted to determine;-

(1) Whether the copper and nickel could be recovered in a l 'Z bulk sulphide concentrate by standard flotation con- ' centration methods;

(2) The ratio of concentration to be expected;t

(3) Whether the precious netals would concentrate with the copper and-nickel in the bulk sulphide concentrate*

, f

Page 29: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

. l. 2 - .

i

( Preparation of the Samples for Testing;

Each sample of drill coro was crushed with the laboratory jaw crusher and then reduced to minus 10 mos.h through rolls operating in closed circuit with a vibrating screen.

A composite sample ior testing was prepared by combining equal quantities of each sacple group. The com posite sample was thoroughly mixed and sampled for analysis* Chemical Analysis:

* *

Composite Teat Hoad SatnoleTotal Precious Kotals - 0.2? oz/ton

Cold, Au - 0.015 oz/tonSilver,-Ag - 0.235 "

f . ' . Platinum, Pt - - 0.005 " "; 'Palladium, Pd - 0.010 "

Copper, Cu - 0.36 per cent -

Nickel, Ni ' . 0.43 "

Sulphur, S - 1.74 w

Outline of Concentration Tests;

. The laboratory concentration studios were limited

to concentration by bulk oulphide flotation of the ore v/ith

fine and raedium fine grinding.

CKN'ERAL SUGARY

Test results indicate this ore will respond quite

favourably to concentration by bulk flotation. The ore is not

difficult to grind and need not be ground finer than 76.5 per

cent minus 200 mesh for a satisfactory liberation of the sul-•f

phide minerals.

Page 30: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

-C ' ' .The concentration treatment of the ore was

directed towards obtaining the maximum recovery of the metals in a rougher bulk concentrate, recleaning the rougher

concentrate as required to produce a bulk sulphide con

centrate suitable for smelting.

Tost results indicate approximately 57 per cent

of the total precious metal content in the ore is recovered.

in a cleaner bulk flotation concentrate.

Indicated recoveries s'nown in the summary table

are based on the metal content in the final cleaner con

centrate. In actual plant operation those recoveries vrould( t

*

be increased as the cleaner tailing v/ould be recycled.

This could be demonstrated in a pilot plant test or in ajf

locked butch laboratory scalo test.

A tabulated auniaary of the test results is

given in table No.l. The individual tests are outlined in

detail in the ru.oaindor of tnis report.

Respectfully submitted,

LAKEFIELD RESEARCH LIMITED

S* O Foster Assistant Manager

Page 31: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

TADLR No. l - CONCENTRATION of COPPER-NICKEL ORE -of TBST H15SULTS

ASSAYS and CHEMICAL ANALYSIS

Test No.

456

Tost Ko,

ft5.6.

Grind Bulk eleanor Concentrate Ratio of ^ - 200 Mesh Au . AK Pt fr. Pd Cu Ni S Inool Concentration

86,7576.5776.57

Au64.42

71.4760.97

0.15 oz0.21 oz

0.18 oz

2.20 oz 0.1052.03 oz 0,1152.45 oz 0.117

oz 4*98# 4oz 4.68# 4oz 6.21J5 5

* ^NtJ l ̂ Pfln A T Q* ^^t 1*4*^ X f \ Tutlf

Per Cent in Bulk Cleaner Concentrate

AK Pt fc Pd Cu59.8758.3355.17

44.8055.3342.36

88.8287.1387.75

.96# 23

.84^ 21

.8735 2?

Ni74.7876.8869.52

,21# 33.48^ 15.6 to 1•7P# 35.56S5 14i6 to 1,30# 21.34^5 19.6 to 1

S ' -85.3785.18 . '80.04 :-

Page 32: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 5 -

Details of Concentration

J.Kc Test No.fr. - Bulk Flotation

A 3000-gram portion of minus 10 mesh composite test head sample was ground in the laboratory ball mill at 60 per cent solids with reagents for 35 minutes* Grind

Mesh

Wt.5S

100 150 :200 - 200

0.14 1.25 4.73 7.13 66.75

The mill discharge v/ao transferred to a Denver Sub A

flotation coll and floated at 25 per cont solids. After the

bulk of the chalcopyrite was floated, sulphuric acid was

added to provide a pulp pH 6.0. 7he nickel-bearing sulphides

were floated with^stage additions of Aerofloat 25 reagent.

The rougher bulk concentrate v/as cleaned tv/ice.

Cleaner tailings were corcbined for w6ight and assay.

Reagents Used: ;.-lb. per ton of oro treated.

To Ball Kill ' Roughing 1st Cleaning 2nd Cleaning

A.C.Reagent301 0.10

Pine Oil 0.05

A.C.Reagent633 0.50

Copper Sulphate

Sulphuric Acid

Aeroflot 25

Ticae (Min's) 35

0.10

0.025

0.25

0.015

0.25

0.75

0.50

0.075

30 10

Page 33: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

c Flotation Results;

Product Weight

. 6 -

Test Ho.4

Auoz Af:

oz Pt&Pd Cu Ki

Test Head (calc) 100.00 0.015 0.235 0.015 0.36 0.424

Ratio of Concentration; 15*6 to l

In solComposite Head - 0.015 0.235 0.015 0.36 0,43 1.74Bulk CI. Cone. . 6.40 0.15 2.20 0.105 4.93 4.96 23.21Bulk CI. Tail 5.00 0.0175 0,47 0.077 0.20 0.44Plot. Tail 33.60 0,005 0.03 0.005 0,0340,096 -

33.43

Per Cent Distribution

Product

Bulk CI. Cone.

Bulk CI. Tail

Plot Tail

Test Head {calc)

' Au

64.

5.

29.

100.

AE

42

36

72

00

59.

10.

30.

100.

87

00

13

00

PtxVPd

44

29"25

100

.80

.53

.67

.00

Cu

88

2

8

100

.82

.79

.39

.00

Ni

74

5t

20

100

.78

.18

.04

.00

S

85.37w '

-

100,00

Page 34: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 7 -

r J* Kc Test No*5

This test is a duplicate of Tost No.4, with coarser grinding.

Grindtoesh ®65 , ...fripp.Wt.jS 1.21 4.41

Reagents Used;

0150 f-200

7.52 10.29

- 200

76.57

The same as recorded for Test h'o.4*

A separation of the platinum group metals was made in this test to show the recovery of Pt and Pd in the bulk sulphide con centrate.

Flotation Results:

Product Weight

Tost No.5

oz ,ft Au

ozAK

oz Pt

oz Pd

^Cu

2 Ki

fi.^^S

Composite Head -* 0.015 0.235 0.005 0.01 0.36 0.43 1.7/

Bulk CI. Cone. 6.83 0.21 2.03 0.052 0.063 4.68 4.84 21.7C

Bulk CI. Tail 10.70 . 0.015 0.155 0.0175 0.0225 0.13 0.39

Plot, Tail 82.47 0.005 0.10 Trace 0.0025 0,03 0.07

Plot. Head 100.00 0.02 0.2380.0054 0.088 0.366 0.429

* Bulk CI. Tail - Insol: 35.56^: 3al. fractions-nil.

Ratio of Concentration 14.6 to 1

Per Cent Distribution

Product

Bulk

Bulk

Plot

CI. Cone.

CI. Tail

Tail

Au

71.47

7.99

20. ̂ k

Ag Pt

58

6

34

.33 65.48

.97 34.52

.70

Pd

49

27

23

.06

.44

.50

Cu

87

66

.13

.12

.75

Ni

76.

9.

13.

88

70

42

S

85.18*-

~

Test Head 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Page 35: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- g -

J* .'c Test No*6; Bulk Flotation

This test was an attempt to improve the recovery of

copper and nickel in the- bulk sulphide concentrate and main

tain a high ratio of concentration.

The ore was ground with reagents at 60 per cent

solids as reported in Test No.5. The mill discharge was treated in the Denver 2000-gram Sub-A laboratory flotation cell. The

pulp was floated for 33 minutes. The rougher concentrate was

cleaned tv/ice. The cleaner tailings were combined for weight and assay.

Reagents Used: Lb. per ton of ore treated *

To Ball Mill Roughing; ' 1st Cleaning 2nd Cleaning

Xanthate,Z-6' 0.15 0.10 -

Pine Oil 0.05 '- -

Copper Sulphate 0.30 - -

Reagent 633 0.75 - 0.50 0.25 , .

Dowanol ' - - ' - '0.10 - 0.05

Sulphuric Acid - - 0.65

Aerofloat 25 - ' 0.05 - - '

Tice (Kins) 25 33 11 " 7

Page 36: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

- 9 -

Flotation Results: Test No.6

Product Vf eightoz

# Auoz oz

Pt&Pd Cu #Hi

* S In sol

Composite Head - 0.015

Bulk CI. Cone. 5*09 0.16

Bulk CI. Tail li.20 0.015

Plot k Tail 83.71 0.005

Plot Head 100.00 0.015

0.235 0.015 0.36 0.*43 1.74

2.45 0.117 6.21 5.37 27.36 21.340.12 O 035 0.17 0.46 f

0.105 :.J05 O.Q3 0.095

0.226 0.0141 0.36 0.43

Ratio of Concentration 19.6 to l

Per Cent Distribution

Product Au Pt&Pd Cu Ni

Bulk CI. Cone.

Bulk CI. Tail

Plot. Tail

Plot. Head

60.97 55.17 42.36 87.75 69.52 80.04

11.18 5.95 27.88 5.28.. 11.93

27.85 38.88 29.76 6.97 18.50100.00 100.00 100,00 100.00 100.00 100.00

Lakefieid Research Limited Lakefieid,Ontario . -. September 3,1952.

Page 37: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

HAWK TUNCTION

HAWK L

LAKEMOUNTl Win J-l

AN4AX EXPLORATION INC

LAKEMOUNT PROPERTYALGOMA

TOWNSHIP 28 RANGE XXIV

DRAWN: T.A.MtG. DATE : I4-ISI-67

Page 38: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 39: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 40: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 41: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 42: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 43: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and
Page 44: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 45: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 46: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 47: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 48: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 49: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and
Page 50: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 51: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 52: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 53: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and
Page 54: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 55: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and
Page 56: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 57: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 58: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 59: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 60: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 61: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 62: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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Page 63: THE LAKEMOUNT NICKEL COPPER DEPOSIT - Ontario€¦ · - l - CONCLUSIONS At the Lakemount property there is an orebody of 2.5 million tons containing Q.36% copper, Q.55% nickel and

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