EXPLORATION ’87 KERR ADDISON

The main thrust of a $6.5-million program for Kerr Addison Mines this year will be on gold exploration targets in Quebec, Ontario, British Columbia and Nevada.

A continuing effort is being made in Quebec to reduce the areas of search in known anomalous gold- bearing zones such as the Casa Berardi and Frotet-Troilus areas. Airborne and ground geophysical techniques have been used to interpret the Archean geological features through overburden in large areas of northwestern Quebec. The initial target areas have been successively reduced in size by use of rock-and-till geochemistry, more detailed geophysics and by drilling of selected zones. As a result of this work in 1985 and 1986, some anomalous areas will be followed up during the 1987 programs which will consist of detailed geophysics in some areas as well as diamond drilling. There is continual correlation and updating of data during all phases of the programs and incoming data is carefully compared with data available on the known mineral deposits.

In Ontario most of the areas selected for intensive work in 1987 are areas where the favorable host rocks are covered by more-or-less glacial overburden; and the problems are consequently similar to those encountered in northwestern Quebec. The Abitibi “South” area and the westward extension of the Casa Berardi geological environment are examples of these covered areas which Kerr Addison will be exploring.

In the Larder Lake camp, a consortium of Kerr Addison, Northfield Minerals and Eldor Resources is participating in a $2-million drilling program managed by Eldor and centred around the old Cheminis mine workings. Northfield may earn a 30% interest in the properties by spending $5 million before June, 1988. If Northfield completes its earn-in, the Kerr Addison and Eldor interests will be 42% and 28% respectively. Surface and underground exploration in the late 1930s, in the immediate post-war period and in the 1980s has outlined several gold-bearing zones hosted by pyritic tuff. The 1987 efforts will be directed towards increasing the drill- indicated tonnage and searching for new orebodies along the favorable host rock horizon. Drilling in this area started in December, 1986, with seven drills and was to have re-started early in January at about the same level of intensity. The company hopes to confirm a minimum mineable tonnage of gold ore within accessible distance from the Cheminis workings which consist of four levels and a shaft to a depth of just over 1,000 ft.

The old Pickle Lake camp, in northwestern Ontario, has been revitalized by the exploration work of Dome Exploration, St. Joe Minerals, Highland Crow and several other companies. Kerr Addison will continue to explore its several hundred claims in the general area of the St. Joe gold discovery and in the immediate area of the Pickle Crow mine and the town of Pickle Lake. The targets sought are bedded sulphide zones in iron formation, gold vein zones within iron formation facies, and stratabound siliceous zones which are gold-bearing. Indications are that there are four potential producers within 60 miles of the Pickle Lake townsite (two of these are within 10 miles of the townsite). The company, believing there are more to be found here, plans to push ahead to explore its wholly- owned claims and, possibly, to join with other interests in prospecting the area.

As a result of its regional reconnaissance work in British Columbia, Kerr Addison has acquired options on several properties. One of these is the Abo Oil property near Harrison Lake. The gold on this property occurs in quartz veins and veinlets in quartz diorite stocks. Drilling results from one of the intrusive zones suggest that a potentially mineable tonnage with a grade of 0.15 to 0.2 oz gold per ton could be substantiated by driving a short adit as well as bulk- sampling and drilling from underground to detail and extend the known mineralization. The company expects to accomplish these objectives in 1987 and is seeking financial assistance to accelerate the exploration work on this property.

Correlation of data on a regional basis followed by widespread geological and geochemical work has led to property acquisitions in several areas of Nevada. It is expected that this work and definitive work on the claim groups will intensify in 1987 with the formation of a joint venture between Kerr Addison subsidiary, Keradamex Inc., and Falconbridge Copper subsidiary, Nevcan Exploration. The combined effort will explore for, acquire and develop open-pit, leachable gold deposits in Nevada and in other states.