Underground Operations at Texada

"TEXADA Island is situated in the Strait of Georgia, about 100 miles northwest of Vancouver. The property of Texada Mines Ltd. lies on the southwest coast of the northern end of the Island. A part of the ""Sunshine Coast,"" the climate is moderate, with about 30 inches of rain during winter months and relatively dry summers. Texada has been shipping high-grade magnetite concentrate continuously since 1952 to Japanese ore buyers. In 1959, a 3,000-foot tunnel was driven just above sea level to explore the possible downward extension of known orebodies then being mined by open pit. In January of 1961, because the open-pit operations had a limited life, C. C. Huston and Associates were brought in as mining consultants to do a feasibility study on the possibility of going underground for production. This study was completed in March, 1961. With the completion of the report, the Company went to Japan seeking a ,long-term contract to justify the capital outlay necessary for setting up an underground operation. Concurrently, underground diamond drilling revealed more ore, and the Company planned some modifications to the concentrator for increasing the copper recovery. By November, 1961, a ten-year contract was signed with Japanese ore buyers for the sale of 450,-000 long tons of concentrates beginning in October, 1963. Since that time, the Company has built its own 65 000-ton ore carrier and an additional three-year contract has been negotiated, with an annual tonnage increase of from 450,000 to 550,000 tons."