SLAM has high hopes for local mine
MONCTON - The head of SLAM Exploration Ltd., a Miramichi-based junior mining firm, is optimistic about his company's mining projects in northern New Brunswick.
Going from the current situation to map staking shouldn't be a major long-term impact,' says SLAM's Mike Taylor about the provinces's new changes to uranium exploration in the province.
"We really have high hopes for Nash Creek and Costigan," says Mike Taylor, the 56-year-old president and chief executive officer of SLAM (TSX-V:SXL).
SLAM held its annual general meeting in Moncton last Thursday night. During the meeting, company executives talked about the firm's exploration activities in New Brunswick and Ontario.
The Nash Creek lead zinc property is located roughly 25 kilometres west of Belledune. SLAM's preliminary reports suggest Nash Creek has a zinc-bearing resource of 3.24 million tonnes with an additional inferred resource of 2.69 million tonnes.
SLAM has been conducting a 10,000 metre drilling program at Nash Creek since May 2007.
The Costigan property, located about 45 kilometres east of Plaster Rock, is also a lead, zinc and silver deposit.
SLAM is also exploring the available resources at the Lewis Brook property, which is close to Costigan.
Of the three SLAM projects in the province, Taylor said Nash Creek could be the first to become a mine.
"Nash Creek is getting close ... we're calling it an advanced project. We're doing a lot of drilling."
(The "Nash Creek" property is actually to the rear of Nash Creek, in the Lorne/Doyleville area.)
SLAM is hoping there are enough mineral resources to develop Nash Creek into a 5,000 tonne per day open pit mine that would employ 200 people and operate for 11 years.
It has already begun early environmental studies on the site and is hoping to secure an independent firm to do a resource estimate. If the resource estimates, scoping and feasibility studies, as well as environmental work all go smoothly, Nash Creek could begin product as early as 2011, he said.
Nash Creek has a number of strategic advantages - it's close to road, rail and electrical infrastructure and short distance away from Xstrata Plc's Belledune smelter and port.
Then there's labour.
With Xstrata's Brunswick Mine slated to close by spring 2010, there will be plenty of underemployed or unemployed skilled labour for SLAM to tap into.
Taylor said one hope is if the Nash Creek studies all pan out and the project moves forward, workers from the Brunswick Mine may stay in the Bathurst area to work at the SLAM mine.
In addition to its three active New Brunswick projects, SLAM also has a number of gold exploration activities in Ontario.
Taylor said recent changes to New Brunswick's mining regulations will have a negative short-term impact on his company.
The changes to New Brunswick's mining rules were brought in after a public backlash against a surge of uranium exploration in the province.
SLAM is not looking for uranium deposits and focuses instead on more conventional commodities.
"In the short-term it's an interruption of our normal course of business," he said. "But ... the long-term picture ... if no other changes come into effect ... going from the current situation to map staking shouldn't be a major long-term impact."
During the annual shareholder meeting, Taylor expressed confidence in his firm's projects in the province.
"I really think what we are doing in New Brunswick is going to put us on the map as a major force in mining."
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