Company looking for Major partner
Doug Ashbury
Northern News Services
Kivalliq (Nov 27/00) - A piece of Kivalliq tundra could be paved with platinum...and palladium...for Starfield Resources.
The company owns the nickel-copper-cobalt-platinum palladium property, located east of Rankin Inlet and south of Baker Lake.
"At some point, we'll be looking for a major (mining company partner)," said Bob Krause, project manager with the Vancouver-based company.
Ferguson Lake could eventually be a "camp" on its own, added Krause, who spoke at the 28th annual Geoscience Forum in Yellowknife last week and at recent Nunavut Mining Symposium in Rankin Inlet.
Palladium is currently trading at $1,200 an ounce, but could rise to $1,500 next year because Russia, which is a major producer, will not ship anymore in the near future, says Krause.
Palladium, an inert metal which does not rust or oxidize, is used in catalytic converters and has a high melting point which means it can better handle higher heat levels associated with transmission of high-speed electronic signals.
Drilling continues
The property's current resource is estimated at 25.8 million tonnes of ore in three zones.
"It's (resource numbers) are changing every week. It's a dynamic thing. We're still drilling," Krause said. "For it to be deemed economic (there needs to be) 35 million tonnes and we're very close.
"My guess is, next year, (it will be) in excess of 50 million tonnes," he said.
"It could be 100 million tonnes."
Starfield has drilled 65 holes on the property in the past 18 months and data from 10 holes is pending. The company plans to drill in December, break for a few months, and continue drill work from about March to October in 2001.
Road access
Copper and nickel were discovered at the property in 1950s but there was no investigation for platinum, palladium or cobalt, Krause said. Inco owned the property for over 40 years.
Starfield has been operating on the site since April 1999, and has spent about $5 million on the property over the past 18 months.
In a cost analysis conducted by B.C.-based Geological and Financial Consulting Services, the firm estimates about $180 million in capital costs. That figure includes an estimate of $45 million for road access between the property and Baker Lake.
The study goes on to suggest mining of high-grade ore would last 4.5 years, with total time operating running about 22 years.
It remains to be seen if Starfield's stock reaches the $4.61 per share suggested by the study.
As of last Thursday, Starfield was trading at 45 cents but has traded as high as $1.46 earlier this year. Starfield stock enjoyed a 250 per cent run up in first half 2000 but has since fallen back to around 45 cents.
