Report from Calgary: Calpine completes its sampling program

A trenching and detailed chip sampling program has been completed on the DD Zone, within the boundaries of the Eisler Lake claim blocks of Calpine Resources Inc. The property is located 90 miles northeast of Lac La Ronge, Sask.

A total of 52 samples was taken from five trenches, with six of the samples assaying gold values ranging from 0.032 oz per ton to 0.23 oz. This zone is open to the east and west and will be evaluated by a program of geophysics and diamond drilling.

The Georges Lake zone, located at the south end of the 16,300-acre property, has given gold assays ranging from 0.036 oz to 0.112 oz.

Calpine’s interest in the property is being earned in accordance with a joint venture agreement with Claude Resources. Calpine has a 3-year option requiring payments totalling $66,000 and, under certain conditions, $84,000 worth of Calpine common shares.

The joint venture calls for Calpine to carry 100% of the exploration expense until $3 million has been spent, at which time Calpine will have earned a 70% working interest.

An exploration program is planned for the property in 1987.

Bighorn Development Corp. has announced preliminary results of an extensive sampling program on the company’s Island Lake property in northern Manitoba.

The main vein structure was sampled at 94 sites along a strike length of 570 ft. A total of 195 saw- cut channel and bulk samples were taken from the footwall, hangingwall, and the vein structure itself.

Based on 49 assays that have been received, the structure shows average grades of 0.167 oz gold per ton across 2.4 ft on the footwall, 0.585 oz across 2.15 ft on the vein, and 0.635 oz across 2.34 feet on the hangingwall.

The company is currently negotiating a major financing in order to proceed on a program of rehabilitating the old shaft and extracting a bulk sample from the 225-ft level. A total of 20,000 ft of diamond drilling is also planned.

Calgary-based Tanqueray Resources has been called for trading on the Vancouver Stock Exchange. The company was originally incorporated in 1984 as a private company and proceeded to assemble a number of mineral properties in the Northwest Territories and Ontario, and oil and gas properties in onshore England.

Tanqueray completed a successful amalgamation with Vancouver- based Carl Creek Resources, and acquired all its assets in a 4-for-1 Tanqueray share exchange.

In 1986 Tanqueray negotiated two farm-in agreements with Westmin Resources of Calgary on gold prospects at Stall Lake, Man., and Sunday Lake, Ont., immediately east of Dome Mines’ Detour gold mine.

On the Sunday Lake property Tanqueray is in joint venture with Gallagher Resources.

The companies have budgeted $450,000 in expenditures for this year.

Carl Creek was an active mineral explorer in North America with several gold and silver prospects in California, British Columbia, and Ontario. Income has been derived from oil and gas production in Texas.

During the coming months Tanqueray will be involved in drilling programs on up to four properties to explore highly prospective gold showings.

General Minerals has conducted extensive exploration work, including test pitting, assaying, and geological mapping, as well as a socioeconomic impact study and a full feasibility study on its placer gold claims on the Rio Cachabil river in Ecuador, South America.

Proven and probable reserves of 72,000 oz of gold have been delineated for a small portion of the total claims area.

As a consequence of these results, the company has signed an agreement with Minas de San Lorenzo whereby Minas will finance, develop, and put the property into production in 1987.

General Minerals will be reimbursed for all its prior expenses and will earn 15% of net revenues from production.

Lethbridge-based Barons Oil has experienced minor delays in the production start-up of their King of Arizona gold project. From the 800,000 tons of tailings, a processing rate of 1,000 tons per day of material grading greater than 0.04 oz gold per ton, is anticipated.

Crown mineral rights were recently acquired in conjunction with North Continenal Energy in southern Alberta. The drilling of two wells on the 10-section block has identified oil-bearing sands of the Sawtooth formation. A suitable completion program for these wells is being investigated.

For the 6-month period ending Aug 31, oil production income was just over $2 million, a 60% drop from the same period in 1985. This is a direct result of the lower oil prices being experienced throughout the industry.

The monthly schedule of luncheons sponsored by the Calgary Mineral Exploration Group was initiated for the 1986/87 season with a presentation by Reg Olsen, of Trigg- Woollett-Olsen of Edmonton. Using a slide display, Mr Olsen discussed the opportunities for metallic mineral exploration in Alberta.

The Alberta government hopes to encourage more mineral activity in the province.

In this regard, the Alberta Chamber of Resources has assembled an information package for prospective explorationists. The government has revised pertinent staking and royalty regulations over the past two years in order to encourage greater activity.