EXPLORATION ’87 ESSO

In 1987 Esso Minerals Canada will spend about $7.5 million on gold and polymetallic massive sulphide exploration throughout Canada. Roughly 70% will be spent in Ontario, Quebec and the Atlantic region with 30% going towards Manitoba, Saskatchewan and B.C. About 15% of the overall budget is directed towards project generation with the remaining 85% committed to program-funding.

From its head office in Vancouver, Esso operates two regional exploration offices in Vancouver and Toronto, with field offices in Timmins and Val d’Or. A staff of about 25 professionals is employed across the country.

In Quebec, Esso is the operator of a large block of ground 60-80 km southwest of Chibougamau. The properties are in the Lac Shortt/ Chibex greenstone belt. They cover portions of a major east/west fault zone, analogous to the Casa Berardi trend. Redaurum Red Lake Mines, Orcana Resources and Morgain Minerals can earn 49% interests in selected properties by spending about $2 million over two years. Numerous gold occurrences and several gold anomalies have been located and are now being drilled.

Further west, in Dieppe, Casa Berardi and Recher twps., Esso is funding a program being operated by Norex. Part of the property is on the same stratigraphic structural horizon as the Inco/Golden Knight deposits. Esso can earn a 50% interest by spending $1.7 million over four years. The 1987 program will continue with the reverse circulation drilling programs started in 1986 and further diamond drilling in the second and third quarter.

At the Selbaie mine, in which Esso has a 35% interest, a $2.1-million program under the direction of BP-Selco will continue on a 350,000- ha area of mutual interest. This will include an underground diamond drill program below the extension of the open pit orebody. The area surrounding the mine has the potential to host both precious and base metal deposits; and the surface program for 1987 will be a continuation of the anomaly and stratigraphic drilling programs for 1986.

In Eastern Ontario, 42 km east of Timmins, Esso Minerals Canada is allowing St Andrew Goldfields to earn a 50% interest in its Taylor-Stock claims. Part of that agreement allows Esso to spend $250,000 a year for two years on surface exploration from funds supplied by St Andrew. The latter company is funding and operating two underground exploration programs to earn 50% and 75% respectively. Esso, depending on the 1987 results, could retain a minority participating interest.

Further west, at Opapimiskan Lake in northwestern Ontario, Esso has a 24% interest in the Musselwhite joint venture with Dome, Canadian Nickel and Lacana. Diamond drilling in 1986 defined two gold-bearing zones at Snoppy Lake and tentative plans call for a major underground program in the winter of 1987.

In the Adams Plateau area of B.C., 60 km northeast of Kamloops, a land package has been put together whereby Esso can earn a majority interest by spending in excess of $3 million by the end of 1990. The target is a polymetallic massive sulphide deposit with enhanced precious metal values, within a Devonian-Mississippian sequence of felsic volcanic- sedimentary rocks. Work in 1987 will see a continuation of the surface drill program started last year.

On Vancouver Island, 15 km northwest of Duncan, the Chemainus project is being advanced under the direction of Falconbridge. Esso is a 50% participating partner. The target is polymetallic massive sulphides in Paleozoic rocks of the Sicker group. Preliminary drilling has been sufficiently encouraging so that a major program consisting of diamond drilling will be undertaken in 1987.

In the Kutcho Creek area of northern B.C., Esso is seeking a joint venture partner for a major massive sulphide program immediately south of the main Kutcho Creek deposit, held by Esso and Sumac Mines. A Questor airborne survey completed in 1986 outlined several anomalous areas for drill targets.

Further west, in the Stewart area, Esso has farmed out to four companies a large land package. The companies anticipate spending $600,000 exploring for precious metals in close proximity and within a comparable environment to Westmin’s Premier-Big Missouri play.