Matamec plans 8,000 metres for Matheson J-V

It’s no coincidence that Matamec Explorations‘ (MAT-V) new Matheson joint venture in the Timmins gold camp is next to Goldcorp‘s (G-T, GG-N) Hoyle Pond gold mine property, says the company’s vice president exploration, Bill MacCrae.

The company has plans for a 3,000-metre drill program to start later this spring to be followed up by another 5,000 metres, costing about $1.2 million.

Located 1.7 km northeast of the Hoyle Pond head frame, MacCrae says the idea of strategically consolidating several properties into the Matheson joint venture caught Goldcorp’s attention.

“As Hoyle Pond goes deeper, it looks to be heading off to the northeast and getting closer to our property,” he says.

The Matheson joint venture property is a 3.7-km property that is made up of 155 units from Goldcorp (2.3 sq. km), 73 units from a private company, Explorers Alliance, and two units from Explorers and Matamec together.

Explorers Alliance and Matamec each have the option to earn a 25% interest in the property by spending $2 million in exploration over three years, leaving Goldcorp with the remaining 50%. Goldcorp can increase its share to 70% (with Matamec and Explorers at 15% each) by paying $6.3 million and completing a feasibility study.

The joint venture deal is Matamec’s prize for putting together the consortium of properties that included the extension of the Holyle Pond geological structure.

Key claims had been the subject of a legal battle for nearly two decades.

“The legal issues arose when (Timmins-based) Colbert Drilling and Exploration did the drilling for a company (and) didn’t get paid,” MacCrae explains. “And long story short they ended up with the property in compensation for their efforts.”

Matamec acquired a 100% interest in those claims by paying $645,000 to Colbert, which in turn paid Matamec $675,000 for 2.25 million flow through shares at 30 each and 2.25 million warrants exercisable at 45 over an 18-month period. Colbert also holds a net smelter returns royalty for 1.5%.

The company’s first target is the Mill Creek/Colbert zone which was first tested by Falconbridge (taken over by Xstrata (XSRAF-O, XTA-L)) in 1986 after the company heard that visible gold had been seen when the foundations for the Xstrata metallurgical site were excavated.

Falconbridge drilled about 42 holes totaling 8,800 metres on 30-metre section lines over a distance of 400 metres between 1986 and 1990. MacCrae says drilling returned economic mineralization in every hole.

“They didn’t continue because at 250 metres it dipped off the property and they had no control of it,” MacCrae says. “And the other thing was, they weren’t looking for something near surface because it’s right adjacent to the Xstrata metallurgical site.”

Around the same time, Anglo Canadian reportedly drilled 13 holes for 3,900 metres on the down dip extension of the Mill Creek zone, showing a potentially continuous zone for 350 metres.

On the Colbert property, historical highlights include 30 cm grading 52.8 grams gold per tonne, 1.74 metres grading 29.42 grams gold per tonne and 8.5 metres grading 4.87 grams gold per tonne.

Historical results from the Mill Creek zone include 50 cm grading 24.14 grams gold per tonne and 6 metres grading 3.28 grams gold per tonne.

The company also plans to do an IP survey over other targets on to mafic/ultramafic belts to the north within the property.

Matamec has submitted its first exploration plan to Goldcorp and is now awaiting approval.

The Holye Pond mine has produced 2.2 million oz. of gold at an average grade of 13.5 grams gold per tonne since 1985.