FARO MINE COMPLEX

Cominco has entered into a deal with the Canadian federal government which gives the company control over the inactive Faro lead-zinc mine in the Yukon but leaves it free of potential environmental responsibilities, reported Canada's Globe and Mail. Under the agreement the Department of Indian and Northern Development (DIAND), the Yukon government and Cominco would contribute to a trust which would provide money and management to maintain the mine until in reopens. Cominco would have the first option to operate the mine. Robert Lauer, the chief of financial analysis and royalty administration for DIAND, said the idea is that the operating costs funded by the trust along with the environmental obligations can be met by a levy on the mine's production should it be reopened. (Cominco Ltd)

Operations were suspended. When mining resumes, reserves in the Grum deposit are expected to support operations at planned rates for at least five years, while mineral resources in the Grizzly deposit, a proposed underground mine at the pre-feasibility stage, would support operations for approximately 11 years. Reserves in the Vangorda pit were essentially mined out at the end of 1996.

Operations were suspended. When mining resumes, reserves in the Grum deposit are expected to support operations at planned rates for at least five years, while mineral resources in the Grizzly deposit, a proposed underground mine at the pre-feasibility stage, would support operations for approximately 11 years. Reserves in the Vangorda pit were essentially mined out at the end of 1996.