EXPLORATION ’87 ELDOR

Eldor Resources will continue to concentrate its search for uranium in 1987 on lands adjacent to the Rabbit Lake and Key Lake mills in northern Saskatchewan, says David Fountain, general manager exploration. Eldor, a wholly-owned subsidiary of the federal Crown corporation, Eldorado Nuclear, will also be exploring for non- uranium minerals in Ontario, Quebec and Saskatchewan.

Through Eldorado Resources, a sister company to Eldor, exploration is carried out in the Wollaston Lake area in the vicinity of the Rabbit Lake mill, both on its own account and in joint venture with Noranda Exploration and Saskatchewan Mining & Development Corp. Drilling during 1986 on the Eagle South and Eagle North deposits, 12 km from the Rabbit Lake mill, has continued to increase reserves for the combined deposits which currently are in excess of 130 million lb U3O8 at an average grade of about 2% U3O8. Efforts during 1987 will concentrate on further definition drilling of the Eldorado-owned Eagle South deposit which has not been delineated at depth or to the south. In addition, engineering studies will be completed with a view to obtaining regulatory approval for underground exploration and test mining on the combined Eagle North (held by a 3-part equal share joint venture of Noranda, smdc and Eldorado) and Eagle South deposits.

These two deposits represent a new uranium deposit model for the Athabasca Basin and make the immediate area one of the most prospective for continuing uranium exploration in Saskatchewan. During 1987, programs of geophysics and drilling will be carried out to further evaluate the area.

Eldor, in joint venture with Uranerz Exploration & Mining and smdc, will continue to actively explore properties in the vicinity of the Key Lake mill during 1987. Eldor’s share of production from the Key Lake mine is two million lb U3O8 annually. Other Saskatchewan uranium exploration ventures of Eldor are in the Stony Rapids and Fond du Lac areas.

During 1986, uranium exploration accounted for about 80% of the Eldor exploration budget and a similar distribution will occur in 1987. However, through agreements with companies which can provide flow-through financing, a significant program of non-uranium exploration emphasizing gold, platinum and zinc will be continued. Some of the more significant programs under way are outlined below, with negotiations proceeding to develop similar agreements on other Eldor-held properties.

Eldor is conducting a major $2- million drilling program, comprising 48,000 ft on the Larder gold project, situated four miles west of the Kerr Addison mine in northeastern Ontario. This project is a joint venture with Kerr, with funding provided by Northfield Minerals and Northern Ranger Oil and Gas, which have the right to earn an interest in the joint venture. The drilling is concentrated on the Cheminis deposit which has known reserves in the upper zones of 272,000 tons grading 0.174 oz gold per ton. Exploration beneath the old Cheminis workings has located a promising new zone from which several holes have returned intersections of economic significance (the best being 0.2 oz gold over 22.2 ft). Excellent potential exists for outlining significant reserves in this zone. Dependent on the results of the current drilling program, a $3-million underground exploration program is planned to begin later in 1987.

The Swansea property, which Eldor is exploring in co-operation with Swansea Gold Mines, lies to the west of the Larder project along the Larder Lake Break. These two properties are separated by the Omega gold mine, which produced about 210,000 oz gold.

In the Rouyn area of northwestern Quebec, an extensive drilling program will be carried out on a second property held in joint venture with Kerr Addison. The exploration will be funded and carried out by Exploration Essor, which is earning an interest in the venture. The drilling will test an area of gold mineralization along the Destor-Porcupine Break.

An exciting gold-platinum property is being explored at Fish Hook Bay in the Goldfields area of northern Saskatchewan, in co-operation with Mary Ellen Resources. The current $500,000 drilling program will further evaluate the high values of gold, platinum and palladium previously located in surface trenches and shallow Winkie drill holes.

Novamin Resources is carrying out a 5,000-m drill program on the Cadieux zinc project in the Renfrew area of Ontario. The project, in which Eldor is a joint venture participant, has significant reserves of zinc mineralization. There is excellent potential for the current drilling to extend the Swamp zone to depth.

Zenmac Zinc is conducting a drill program on the Tuuri zinc project under an agreement with Eldor whereby it has the right to earn an interest in the property. The project is near Schreiber in northwestern Ontario, an area where high zinc values were previously obtained in drill holes, with the best intersection being 13.24% zinc over 11 ft.