EXPLORATION ’94 — Lenora preparing feasibility study for

Mining in this part of northern Saskatchewan ceased more than 10 years ago, leaving the town with few people and limited prospects.

One thing that did not change was the geology and the potential for reviving old deposits. And that is why Greater Lenora Resources (TSE), part of the Kasner group of companies, is looking at a couple of gold deposits in the area which it hopes to place into production.

The wholly owned Goldfields project consists of the 70-hectare Box property (a former gold producer) and the 168-hectare Athona property about 2 km away. The Goldfields project is on the north shore of Lake Athabasca, 24 km by all-weather road from Uranium City. During the summer shipping season, heavy equipment and supplies can be barged to the site from Fort McMurray. A winter road across Lake Athabasca makes the property accessible from Cluff Lake during freeze-up. Hydro power is available on site, a legacy from the days when the mine was in operation. The airstrip at Uranium City is capable of handling jets.

Gold was first discovered in the area in 1934, resulting in a lot of prospecting and the discovery of several deposits, including Box and Athona. Between 1939 and 1942, about 64,066 oz. gold and 22,205 oz. silver were recovered from underground operations at Box. By 1939, surface and underground work at Athona had outlined a probable reserve of 1.22 million tonnes grading 2.95 grams gold per tonne and a possible reserve of 3.2 million tonnes at 2.74 grams.

Plans to mine the Athona deposit were drawn up, including use of the Box mill, but when that shut down the Athona project came to an end. The properties were optioned by Kasner in 1987 and detailed work was undertaken to evaluate them. Late that year, a prefeasibility study indicated that an open-pit operation could be economic.

In May, 1988, a detailed prefeasibility study was completed. Proven and projected tonnage for both deposits amounted to 27.2 million tonnes grading 1.85 grams. The project did not proceed at that time because of market conditions.

The steel skeletons of the original headframe and mill sit atop a prominent red granite hill which dominates the Box property. The tabular-shaped Box granite is about 700 metres in length and varies in thickness from 45 metres to 60 metres. It dips to the southeast at about 40 degrees.

A series of quartz vein zones, which cut through the granite, hosts most of the gold mineralization in the form of native gold or associated with pyrite and, less commonly, with sphalerite, galena and chalcopyrite. Sulphide content is less than 3%. There is minor gold mineralization in the host granite.

Mineralization at Athona is similar to that at the Box in that it is vein-hosted within a granite; however, the sulphide content is less than at the Box and visible gold is not as common.

It is proposed that both deposits be mined by open pit, with ore from the Box and Athona deposits being processed at a mill at the Box mine site. This year’s drill program consisted of 50 holes (representing 5,000 metres) at Box and 51 holes (representing 4,200 metres) at Athona, bringing the total to more than 200 holes completed by the company at both deposits. The drilling was aimed at testing the mineralization to a depth of 300 metres below surface, and confirming the Box mineralized zone. Drilling at Athona was intended to increase reserves.

At the Box deposit, the mineralized zone was drilled off at 25-metre centres over a strike length of about 550 metres, with a 60-metre section drilled off at 10-metre centres. By drilling at 10-metre centres, it was assumed that the results from this area could be extrapolated with confidence over the rest of the mineralized zone.

There is potential for more mineralization at depth at the Box deposit, while at Athona the deposit has bottomed out.

Because of the nugget effect of the gold, total metallic assaying is being done on the entire core, resulting in the uncut assay representing total contained gold. Assay results

to date have confirmed results from previous drilling and

indicated the presence of a slightly enriched zone near the surface. “We are encouraged with the infill drilling showing continuity and increased grades,” said Charles Pitcher, president of Greater Lenora.

The drill results are being compiled together with all previous drilling results and will be used as part of an in-house feasibility study which should be ready next spring. Upon completion, the study will be audited by a major consulting firm. Much of the work was done previously and now it is a matter of fine-tuning the results, especially in the milling and metallurgical processes.

The company hired Pitcher earlier this year to help steer the project to a successful conclusion. Pitcher, who has 30 years experience in the mining business, is in charge of day-to-day operations of the company, but, more importantly, he must put together a team that will take the Goldfields project to the production stage.

It will be a busy winter for Pitcher. He must get the feasibility study completed and environmental approvals finalized. Financing must be arranged before work on the site can begin. Pitcher believes that if everything falls into place and all the equipment is ordered and delivered on site during the 1995 shipping season, then the mine could be in production two years from now. — The author is a Toronto-based freelance writer.