MINERA~1 Record

MINERAL INVENTORY FILE NO.

0716

______________________________________________________________________________________________________

PRODUCT

Copper

NTS AREA

63K13SW

REF.

CU 12

______________________________________________________________________________________________________

NAME OF PROPERTY

Trout Lake (Embury Lake)

OWNER OF OPERATOR ADDRESS

1994- Hudson Bay Mining and
Smelting Ltd.
1906-201 Portage Ave.
Winnipeg, MB, R3B 3K6

OBJECT LOCATED

Centre of Zone 1

MINING DIVISION

The Pas

Latitude

54°49'10

Longitude

101°48'40

Uncertainty (m)

100

UTM Zone

14U

Easting

319000

Northing

6078100

L.S./Quarter Section

Section

Township

Range

29WPM

DESCRIPTION OF DEPOSIT

The deposit is situated within Precambrian Amisk Group “chloritized and sericitized quartz-eye porphyries and rhyolite, which have been intensely altered near the ore zones” (Muzylowski, 1979).
“The orebodies occur as two main zones, containing lenses of mineralization elongated along plunge. The two main zones are 350 m apart, dipping 60° to 70° to the northeast and plunging 40° to the east. Low grade mineralization occurs between zones” (Muzylowski, 1979).
“The mineralization is almost always massive sulphides occurring in highly schistose quartz sericite rocks, which are probably altered quartz porphyries. An extensive zone of chloritization occurs in the footwall rocks” (Muzylowski, 1979).
“A typical ore intersection from hangingwall to footwall begins with massive pyrite and sphalerite, with very little chalcopyrite. It then grades to massive pyrite, sphalerite and chalcopyrite and then zones to pyrite and chalcopyrite towards, and into the footwall” (Muzylowski, 1979).
“The main ore lenses show sharp contacts on the hangingwall with the footwall rather diffuse, which in most instances is predominantly a chlorite, schist-chalcopyrite stringer ore” (Muzylowski, 1979).
“Pyrite-sphalerite ore grades from fine to medium and contains, as minor accessory minerals, chalcopyrite. Pyrite chalcopyrite ore is medium- to coarse-grained with minor accessories of sphalerite, pyrrhotite, cubanite, molybdenite, hessite and wehrlite” (Muzylowski, 1979).

ASSOCIATED MINERALS OR PRODUCTS OF VALUE

Zinc, Gold and Silver

HISTORY OF EXPLORATION AND DEVELOPMENT

The deposit is located beneath Embury (Trout) Lake, near the middle of its’ southwest shore and 4 km north of the city limits of Flin Flon.
In March 1948, the perimeter of Embury Lake was staked with the Last Group (P18659- P18698) of 40 claims. During the summer of 1948, the shores of the lake were mapped and three holes (L1-L3) were drilled on the southwest shore near the south end of the lake. During the winter, a mobile E.M. unit was pulled by tractor over the ice. The conductors were checked using a stationary E.M. induction unit and magnetometer. Conductor F (File 90467), which indicated the deposit, was not drilled.
In January 1949, the Last Group was assigned to James O’Neill, and in February to Stanmac Limited, which in April, optioned the property to Hudson Bay Exploration and Development Company Limited. During the winter of 1949, a second E.M. survey was conducted by Stanmac Limited for Hudson Bay (File 90466). Values obtained over the deposit indicated a conductor, but again, it was not drilled.
In March 1950, D.D.H. No. #-3 was drilled from Last No. 10 (P18668 staked by N. Olson) toward a near shore conductor, indicated by the second survey. If the hole had been continued another 250 metres, the Trout Lake orebody would have been discovered (File 90468). In 1954, the Last Group was cancelled after Hudson Bay dropped the option.
In July 1965, cards No. 21, 22, 35, 36, and 44 (P778C, 779C, 792C, 793C, and 801C) were staked over the deposit by Norman and Victor Anderson and assigned to Maverick Mines & Oils Ltd. No work was reported as of October 1966, and the property was cancelled. In January 1969, Leonard Anderson staked CB 341 and CB343 over the deposit, and in November assigned it to Vincent A. Bolin and Kenneth Sloan Dixon. Again, no work was reported and in March 1971, it was cancelled.
After noting that ”acid rocks” were found in the drilling reported in Assessment Files 90467 and 90468, Questor surveys was contracted to fly over Embury Lake in June 1974, by Gränges Exploration Aktiebolag (in a joint venture with the Manitoba Government). Staking claims began in August, and in November, J. Jerome Studer staked CB 7032 and CB 7107 over the deposit. A ground slingram survey was conducted, and during the winter of 1976, drilling began (Muzylowski, 1979).
”The discovery hole in Zone 1 intersected 19.05 m of 1.56grams/tonne (g/t) Au, 15.8g/t Ag, 1.22% Cu and 3.21% Zn. The discovery hole in Zone 2 intersected 4.57 m of 0.40 g/t Au, 4.33 g/t Ag, 0.05% Cu and 2.75% Zn. This hole was not ore grade, however, the type of sulphides and the host rock indicated its significance.
Drilling on the zones, during the winters of 1977 and 1978, totalled 10 000 m in 51 holes and indicated 3.6 million t of 1.4 g/t Au, 8.9 g/t Ag, 2.6% Cu and 4.3% Zn. “ A 40 m thick crown pillar was excluded from the estimate “ (Muzylowski, 1979).
In 1978, the 50% interest of the Manitoba Government was transferred to Manitoba Mineral Resources Ltd., (MMR) a new crown corporation (Northern Miner, February 11, 1978). Development of the property was announced on May 1, 1980 with Hudson Bay Mining and smelting Co. Limited providing the $28 million to earn 44% interest in the property. The Scandinavian Minerals Syndicate, represented by Granges Exploration Aktiebolag (19.8%) and Outokumpu Oy (9.2%), was to hold a total of 29%, with MMR holding the remaining 27% (Winnipeg Free Press and Winnipeg Tribune, May 1, 1980).
Work started on the property in mid-1980, with the agreement to develop the property into an operating mine signed on November 21, 1980. By year-end, 200 m of the main decline had been driven under Embury Lake (HBMS Annual Report, 1980).
As of January 1981, the proven ore reserves were “2 891 000 t averaging 3.07% Cu, 4.5% Zn, 13.4 g/t (0.39 oz/ton) Ag and 50 g/t (0.043 oz/ton) Au” (Department of Energy and Mineral Resources, Mineral Bulletin MR 191, p. 17). “Production of development ore started in December 1981, and by March 31, totalled 13 319 t (14 682 tons)” (Manitoba Mineral Resources Ltd. Annual Report, 1981-82). Full production of 1 800 tons) per day was expected by October 1982 (Northern Miner, January 21, 1982).
In January 1982, the property was assigned to Hudson Bay Exploration and Development Company Ltd. and in June, to Hudson Bay Mining and Smelting Co. Ltd.
In February 1983, the mine reached its’ full production rate of 1 620 t per day. Proven reserves, as of August 24, 1983, the official opening date of the mine, were “2.2million t of ore containing 2.38% Cu and 5.2 % Zn, plus smaller amounts of Au and Ag”. Total development cost of the mine, including a 1 670m decline, was about $28.5 million (Winnipeg Free Press, August 25, 1983).
In June 1984, the mine was producing at approximately 9070 t (10 000 tons) per week. Proven ore reserves had increased to 3 790 000 t (4 179 200 tons) at 2.3 g/t (0.0671 oz/ton) Au, 20 g/t (0.58 oz/ton) Ag, 2.66% Cu and 5.8% Zn. Probable and possible reserves totalled 2.1 million t (2.4 million tons) (GCNL, June 26, 1984).
In 1988, the venture partners added a 560 m shaft to the mine at the cost of $17 million. In 1989, the newly renamed Granges Inc., bought out Outokumpu’s 9.2% interest, increasing Grange’s total interest to 29% (Northern Miner, April 3, 1989).
Oxford Acquisitions launched a $100 million lawsuit against Granges and Outokumpu, in 1989, over the sale of Outokumpu’s 9.2% in the previous year. Oxford maintained that they held prior rights to the purchase of the stake. The claim demanded damages, including future profits and conveyance of the 9.2% interest.
Hudson Bay entered an agreement, in 1990, with the Manitoba Government and Prairie Plant Systems Inc., to begin developing an experimental hydroponics laboratory in an unused 360 m shaft within the mine (Prairie Plant Systems Inc, http://www.prairieplant.com/pv-ug.htm, 2002). However, there was no public announcement at the time of this agreement.
Several other improvements were made that year, ancillary facilities were added to the 2100 ft.) level by the year’s end, costing $28 million. As well, 3 holes were drilled from the 560 m level into northwest part of the mine. In 1991, underground drilling exposed 2 new grade zones. In 1992, A new shaft was also driven an additional 640 metres. 35 000 m of exploration drilling was completed, as well as 24 000 m of definition drilling to outline the new zones. The partners spent $3.8 million to further explore the deposit (Canadian Mines Handbook, 91-92, and 92-93, Granges).
In February 1993, Granges settled the Oxford Acquisitions suit. Terms of the settlement included mutual full and final releases, and dismissal of the action on consent, without costs. Granges also agreed to issue Oxford 150 000 shares on receipt of stock exchange approval.
By the end of 1993, the shaft had been developed to a depth of 760 m, and to 640 m by a series of declines in the north zone. New mining areas were planned for the north zone, with the completion of a 900 m main ramp (Canadian Mines Handbook, 1993-1994, p. 195).
In 1994, Granges accepted Hudson Bay’s offer to purchase Grange’s 29% interest for $33 million plus return of working capital. MMR elected not to exercise its’ right of first refusal to the deal. MMR instead, elected to sell it’s remaining 27% interest to Hudson Bay, giving Hudson Bay 100% interest in Trout Lake (Canadian Mines Handbook 1995-1996, p. 195).
In 1995, two new hangingwall crosscuts on the 760 m level were completed to facilitate exploration of the H10, North, west and middle zones.
New mining areas opened in 1997, with the deepening of the shaft to the 1100 m level (Canadian Mines Handbook, 1997-1998, p. 230).
Health Minister, Allan Rock, announced in December 2000, that Prairie Plant Systems Inc. had been contracted to produce medical marijuana in the underground hydroponics lab at Trout Lake (The Reminder, December 27, 2000)., Rock expected the initial batch, produced in 2001 to be used for research, with the first supply to be ready by January 2002.
As of 2002, mining in Trout Lake is continuing with proven and probable reserves standing at 4.8 million t, averaging 1.3% Cu, and 4.4% Zn with precious metals (Canadian Mines Handbook, 2001-02).

HISTORY OF PRODUCTION

N/A

REFERENCES

Bailes, A.H. 1971: Preliminary Compilation of the Snow Lake-Flin Flon- Sherridon Area, Manitoba
Mines Branch Geological Paper 1/71.

Canadian Mines Handbook 1992: Granges Inc., Canadian Mines Handbook p. 189.

Canadian Mines Handbook 1993: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p. 187.

Canadian Mines Handbook 1994: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p.195.

Canadian Mines Handbook 1996: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p. 216.

Canadian Mines Handbook 1997: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p. 216.

Canadian Mines Handbook 1998: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p. 230.

Canadian Mines Handbook 2002: Hudson Bay Mining and Smelting, Canadian Mines Handbook
p. 188.

Gale, G.H., Baldwin D.A, and Koo, J. 1980: Geological Evaluation of Precambrian Massive
Sulphide Deposit Potential in Manitoba. Manitoba Mineral Resources Division Economic Geology report ER 79-1, p.23, 108.

Hosain, I.T. 1981: Summary and Evaluation of the Geophysical Data from the Open Assessment
Files of the Flin Flon-Snow Lake Greenstone Belt; Manitoba Mineral Resources Division, Open File Report 78/2, p. 16

Manitoba Mineral Resources Division: Corporation File, Granges Exploration Aktiebolag;
Manitoba Mineral Resources Division.

Manitoba Mineral Resources Division: Corporation File, Hudson Bay Mining and Smelting Co.
Ltd.; Manitoba Mineral Resources Division.

Manitoba Mineral Resources Division: Corporation File, Manitoba Mineral Resources Ltd.;
Manitoba Mineral Resources Division.

Manitoba Mineral Resources Division: Corporation File, Maverick Mines & Oils Ltd.; Manitoba
Mineral Resources Division.

Manitoba Mineral Resources Division: Corporation File, Stanmac Ltd.; Manitoba Mineral
Resources Division.

Manitoba Mines Branch: Assessment Files No. 90466-68; Manitoba Mines Branch

Muzylowski, M. 1979: Copper-Zinc Discovery, Flin Flon Manitoba; Canadian Mining Journal,
Vol. 100, No. 5 p. 65, 67.

Northern Miner 1989: Granges buys out Outokumpu’s stake in Trout Lake mine; Northern Miner,
April 3rd, 1989.

Prairie Plant Systems Inc.2002: Underground grow operation; Prarie Plant Systems Inc. URL:
<http://www.prairieplant.com/pv-ug.htm>, June 2002.

The Reminder 2002: The Reminder, December 27th, 2002.

Winnipeg Free Press 1983: Winnipeg Free Press, August 25th, 1983.

MAP REFERENCES

Bailes, A.H. 1971: Map GP 1/71, Geological Compilation of the Snow Lake-Flin Flon-Sherridon
Area; 1:253 440 scale, geological map accompanying publication by Bailes (1970).

Manitoba Mines Branch and Geological Survey of Canada: Map 2454, Flin Flon, Manitoba Mines
Branch and Geological Survey of Canada, aeromagnetic map, scale 1:63 360.

Manitoba Mineral Resources Division.: Map SW 13, 63K, ‘Circa 1974”; Mining Recording,
Manitoba Mineral Resources Division, claim map, scale 1:31 680.

Muzylowski, M. 1979: Map Figure; Ground Geophysical Survey accompanies publication by
Muzylowski (1979).

Surveys and Mapping Branch, Ottawa 1981: Map 63K/13, Flin Flon; Surveys and Mapping Branch, Ottawa, topographic map (3rd Edition), scale 1: 50 000.

URL

N/A

Images

Images/0716-1
Images/0716-2
Images/0716-3

REMARKS

N/A

NOTES

N/A

Compiled/Revised by:

JDB JDB HRW JJJ

Date

08-79 08-83 07-84 06-02