About $3 million will be spent next year on exploration in Newfoundland by Dolphin Explorations which is closely associated with the International Corona group of companies.
The majority of the funds will be directed towards exploration on Dolphin’s Cape Ray project just north of Port aux Basques where 9,902 ft of drilling in 14 holes was completed this year. That work confirmed and extended the known mineralization in the main zone where reserves are estimated to be 991,600 tons grading 0.185 oz gold. A higher grade portion of these reserves (695,300 tons) averages 0.234 oz gold.
Riocanex Inc. trenched and drilled the property between 1977 and 1983 and some 78,426 ft of drilling was completed in 171 holes during that period. New Ventures Equity optioned the property two years ago and drove a 500-ft decline to test the main zone and completed 225 ft of drifting along the vein. Then the property was vended into the International Corona group and subsequently Dolphin. Mascot Gold Mines has been contracted to manage the exploration work.
All the reserves are within 550 ft of surface but the mine potential is entirely underground as opposed to open pit, says the company. A major fault structure runs through the area and the gold mineralization occurs in en echelon shears related to that structure. It’s a highly contorted, folded, package with quartz carbonate in-filling plus several minerals including chalcopyrite, galena, sphalerite and minor arsenopyrite.
The structure has been outlined to 950 ft but economic gold values have been found to 750 ft, says Rodney W. Arnold, project geologist. Double reserve tonnage
Results from seven drill holes were recently reported and the two most significant intersections were 6 ft of 0.42 oz gold and 11.4 ft grading 0.193 oz. Vice-president Len W. Saleken says the company’s objective is to at least double the reserve tonnage in a systematic exploration program next year. They want to do some underground work from an existing level and possibly put down a lower mine working for bulk sampling purposes as well. If all goes according to plan, he feels they might be in a position to conduct a feasibility study in 1987.
Access to the property is via a winter road and the company is hoping the Newfoundland government will be receptive to providing some infrastructure as it did for BP Canada’s Hope Brook gold project 37 miles to the east. An estimated $6 million has been spent on the property by various operators so it’s far from being a grassroots situation. Dolphin has one of the largest land positions of any junior company in Newfoundland and will be conducting programs on many of them.
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