Introduction to the Red Dog Project

"INTRODUCTIONThe Red Dog Project in Alaska is being developed by Cominco Alaska, a subsidiary of Corninco Ltd. of Canada, and the Nana Regional Corporation, one of the 12 native corporations created by the Alaska Native Claims Settlement Act of1971.The State of Alaska is also a very key part of the project through its financing of the transportation system for Red Dog. Red Dog will be the third, and largest, of Cominco's Arctic mining developments in the past thirteen years, after the Black Angel Mine in Greenland, which started up in 1973, and the Polaris Mine in the Canadian Arctic, which began production six years ago in 1982.Red Dog is one of the world's great mineral deposits, with a unique combination of large size, high-grade, and a waste-to- ore ratio less than I: I, which will make it the world's largest, and one of the lowest cost zinc producers, when at full production. The present mineral reserve is estimated to be 85 million tons , at a grade of 17.1010 zinc, 5% lead, and 2.4 ounces per ton of silver. Based on the current production forecast, this will give a mine life of almost 50 years, and the deposit is still open in two directions, although the structure is becoming thinner at depth. As well, there is a satellite zone about one mile south of the main deposit which could contain up to another 8 million tons of mineral at Red Dog grades or better. This is not presently included in the reserve due to potential processing difficulties.In relation to other zinc deposits, Red Dog is the second largest ever discovered, smaller than the original Broken Hill deposit in Australia, but larger than Cominco's own Sullivan Mine in British Columbia, which is number three. It is quite possible that, when the area is adequately explored, Red Dog will be number one."