Inco Ltd N
Shares issued 181,702,011 Jan 17 close $22.62
Thu 18 Jan 2001 News Release
Mr. Mike Sopko reports
As part of its continuing exploration program and efforts to increase
palladium and platinum production, Inco has discovered new high-grade ore
at Sudbury, Ont. Through these discoveries, Inco expects to capture the
benefits of the current prices for platinum group metals.
Inco geologists have discovered new platinum group metal deposits at its
Copper Cliff North mine. In addition, Inco has increased the amount of
platinum group metals at its Totten deposit and identified very high-grade
copper, nickel and platinum group mineralization at the McCreedy East mine.
"We're having tremendous success finding new high-grade ore deposits near
Sudbury that have excellent precious metal values, which are predominantly
palladium and platinum with some gold, and can be developed at low cost,"
said Inco chairman and chief executive officer Mike Sopko. "We also expect
to bring them rapidly into production with existing mine infrastructure at
a time when market prices for these metals have been soaring."
The company currently plans to produce 416,000 ounces of platinum group
metals in 2001 from Inco ores and purchased materials, a 21-per-cent
increase over the 344,000 ounces it produced in 2000. Revenue from platinum
group metals was $224-million (U.S.) in 2000, 72 per cent higher than the
$130-million (U.S.) in revenue in 1999. Most of the platinum group metal
production comes from Sudbury ores.
The current price for palladium is over $1,000 (U.S.) an ounce while
platinum sells for more than $600 (U.S.) an ounce.
Inco is a significant producer of platinum group metals. Palladium and
platinum are critical to a host of industries today, ranging from auto
manufacturing to computers. These metals are also used for catalytic
converters to reduce auto emissions, fuel cells for batteries in hybrid and
electric cars, and components for laptop computers.
The Copper Cliff North mine discovery, an extension of the 138 orebody, has
exceptionally high-grade platinum group metals. Located 400 metres north of
the mine shaft, the deposit was brought into production in the last quarter
of 2000. It contains a proven reserve of 300,000 tonnes grading 16.4 grams
per tonne of combined platinum group metals and gold, 0.9 per cent nickel
and 4.5 per cent copper. Exploration continues since the deposit is still
open at depth.
Pump Lake, another new deposit consisting of three zones situated about
2,500 metres north of the Copper Cliff North mine shaft, also has excellent
potential. Exploration drilling to date has outlined a total indicated
resource of 3.5 million tonnes of 1.4 per cent nickel, 1.0 per cent copper
and 1.5 grams per tonne combined palladium, platinum and gold. Included in
this total is the East Flank zone which contains 0.23 million tonnes of 1.5
per cent copper, 3.2 per cent nickel and 5.9 grams per tonne palladium,
platinum and gold combined. Further drilling is expected to increase this
resource.
Further exploration at the high-grade Totten discovery, announced in
October, 1999, has increased the total indicated and inferred resource
tonnage by about 20 per cent at a slightly higher grade. The deposit, as
delineated, contains 10.1 million tonnes of 1.50 per cent nickel, 1.97 per
cent copper and 4.8 grams per tonne of palladium and platinum, including
1.4 million tonnes of inferred resource at 1.4 per cent nickel, 2.0 per
cent copper and 7.1 grams per tonne palladium and platinum. Significant
additions to this resource are expected since exploration drilling and
geophysics indicate that the limit of the orebody has not yet been reached.
More detailed delineation drilling is continuing and a feasibility study is
under way to bring the orebody into rapid production.
Inco geologists also report the discovery of narrow veins of very
high-grade platinum group mineralization at the McCreedy East mine. This
new mineralization is believed to be a faulted extension of McCreedy East's
153 orebody which has similar high-grade platinum group metals. The new
zone has been intersected in nine holes over a strike length of 600 metres
and with a down dip for 300 metres. Further exploration is needed to
establish the continuity of the mineralization and estimate a mineral
resource. Intersections from this new zone are listed in the in the chart
below.
Core Precious
Length Ni Cu Metals
(m) % % g/t
0.5 0.2 26.0 19.5
0.2 24.3 10.9 9.1
0.4 0.5 29.7 32.6
0.5 0.2 4.7 8.6
0.9 0.3 3.2 19.3
0.3 2.0 21.6 24.0
1.4 2.0 2.0 104.0
2.0 2.0 31.1 12.0
0.3 1.2 10.6 31.4
0.2 1.8 25.9 60.1
3.9 2.9 28.1 58.0
0.7 0.1 4.2 8.0
0.2 1.1 29.3 43.1
0.2 2.8 22.1 33.5
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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