EXPLORATION ’87 COMINCO

Vancouver-based Cominco Ltd. continued an aggressive exploration program in 1986. But with expenditures of about $25 million, it was at a sharply reduced level compared with previous years. This is a reflection of the funds available rather than the quantity or quality of targets.

Work in Canada was funded by the sale of flow-through shares. Agreements with other mining companies, under which they could earn an equity in a specific property by funding exploration on it, provided an additional $3 million. This allowed exploration to go ahead on 20 more properties. Efforts were mainly directed towards gold and zinc, although specific projects focussed on industrial minerals, diamonds, platinum and niobium.

In western Canada, work was divided almost equally between zinc and gold in 1986. Highlights included the Snip property, in the Stikine area of northwestern B.C., where 10 of 13 diamond drill holes intersected significant gold values. Results suggest the presence of several gold-bearing structures and additional drilling is planned. This work is being funded by Delaware Resources Corp. to earn an interest in the property. Gold prospects were investigated elsewhere in B.C. and in the Northwest Territories where work in the Contwoyto Lake area gave encouraging results. Base metal exploration was divided between work in B.C. and the ongoing program of geophysics and diamond drilling of the large Pine Point Mines holdings in the N.W.T. Investigation of the Aley niobium prospect, north of MacKenzie, B.C., continued with both trenching and diamond drilling. Several niobium- rich zones have been identified, but more work is required to assess their potential.

Massive sulphide deposits were the primary targets in Saskatchewan and Manitoba, while in Ontario and Quebec gold prospects received most of the attention. Five gold properties were diamond-drilled with significant values reported from three of them. One is the Garrcon property in Garrison Twp., 35 km north of Kirkland Lake, a joint venture with Jonpol Exploration. Gold showings were explored on this property in the 1930s and 1940s. The current program is to direct towards several east-west structures identified by geophysics. Results have been encouraging with 12 of 15 holes completed to date intersecting significant gold values in two parallel zones. More drilling is planned on these zones as well as on untested targets elsewhere on the property. On the Telgar property, in Thackeray Twp., 30 km north of Kirkland Lake, significant gold values were obtained in two of the 10 holes drilled, and more work is planned. This work is being funded by Van State Resources to earn an interest in the property. The third property to yield encouraging results is in German Twp., 30 km east of Timmins, and again more drilling is planned.

In the U.S., Cominco American Inc. centred its exploration efforts in Alaska, Nevada and the northwestern states — mainly for gold and base metals. A number of potential heap- leach gold situations in Nevada were investigated with gold-bearing zones identified by drilling on one, where work will continue in 1987. Interesting gold showings in Alaska will also be followed up in 1987. Base metal exploration continued in Idaho and Montana.

Work in Latin America is directed from field offices in Guadalajara, Mexico, and Lima, Peru. Precious metals remain the main target and several gold-bearing zones will be the subject of further drilling in 1987.

European exploration is directed from a base in Brussels with base metals continuing to be the main target in Europe. “Promising” situations are being investigated in Germany, France and Italy.

In Australia, Aberfoyle Resources, in which Cominco has a 47% interest, continued its active exploration programs in Tasmania for base metal deposits, for gold in western Australia and for diamonds in Northern Territory and Queensland. Development is now under way on two of the most recent successes: the Hellyer base metal deposit in Tasmania and the Bardoc gold project in western Australia.