EXPLORATION ’94 — Busy Manitoba exploration scene

Major exploration efforts in Manitoba in 1993 remained directed at base metals, but new commodities, notably diamonds, continued to increase in importance on the exploration scene.

The recent improvement in gold prices triggered a new interest for gold in the province. A new gold mine was opened near Lynn Lake and a resurgence in exploration is taking place at former gold mines at Snow Lake and Bissett. During 1993, the land area acquired for mining exploration increased dramatically. To the end of November last year, 2,137 claims and 9 exploration and special permits had been recorded compared with 742 claims and 4 permits for the same period in 1992.

This increase is partly attributable to the growing interest in diamonds in Manitoba.

At the end of November, 1993, the total area of mineral dispositions in good standing was 2,966,200 hectares, an increase of 16% over the same period in 1992.

Projected exploration expenditures in 1993 remained at a level comparable to last year’s estimate of $32 million.

On the base metal front, Hudson Bay Mining and Smelting (TSE) completed construction and installation of the new 2-stage zinc pressure leach plant at Flin Flon. This facility, the first of its kind in the world, uses two stages of pressure leaching for 100% of its zinc production.

In operation since August, the new plant operated above design levels, extracting 98-99% of the zinc in concentrate. This new process reduces sulphur dioxide emissions by 25% and particulate emissions by 50%. At the Trout Lake mine near Flin Flon, HudBay and partners Granges (TSE) and Manitoba Mineral Resources (MMR) continued underground exploration. A $3.8-million program, focused on further definition of the H10, North, South and Middle zones, was proposed. In addition, $1 million was earmarked for surface exploration in the Trout Lake area.

At the Callinan deposit, near Flin Flon, new ore-grade mineralization was intersected in the vicinity of the North and South zones.

In the Chisel Lake area near Snow Lake, Hudson Bay Exploration conducted a number of drilling and geophysical programs along the volcanic sequence that contains known sulphide mineralization in the Chisel Basin. HudBay was also busy throughout the Flin Flon-Snow Lake belt; drill programs were carried out at Lindsay Lake, Woosey Lake, Wolverton Lake, Osborne Lake, Rail Lake and Vamp Lake.

Exploration for new nickel/copper deposits continued in the Namew Lake area. HudBay conducted drilling and geophysical surveys at Namew Lake, Goose Lake, Wanless-Clearwater Lake and in the Simonhouse Lake area.

Granges was particularly active throughout the Flin Flon-Snow Lake belt in the winter of 1993. The company conducted geophysical surveys and drilling at the Westarm joint venture (HudBay), Mikanagan Lake, North Star Lake, Morgan Lake and Cook Lake.

Other noteworthy exploration projects in the Flin Flon area included Placer Dome (TSE) at Sourdough Bay; MMR at the Lim zone at North Moose Lake where drilling has intersected 1.4% copper stringer mineralization over 6.4 metres; and Canmine Resources (CDN) with two drill programs at Kississing Lake, where encouraging alteration and polymetallic sulphide mineralization was encountered.

Base metal exploration activity increased in the Lynn Lake belt in 1993. With the assistance of the Manitoba Exploration Incentive Program, Registry Resources (ME) conducted geophysics and drill programs at Suttie Lake and Wellmet Lake. A drill hole at the Wellmet Lake project cut an 11.5-metre intersection grading 0.34% copper and 2.84% zinc.

Other companies that carried out drill programs in the belt include Granges near Tenklei Lake and MMR at Counsell Lake. HudBay continued to conduct drill programs in the Ruttan mine area.

Inco Exploration and Technical Services conducted a major deep drilling program in the Pipe mine area south of Thompson. In addition, geophysical surveys and drilling programs were conducted at Ospwagan Lake and in the Liz Lake-Mid Lake area.

At the Manitoba division of Inco (TSE), underground development of the 1-D deposit consisted of vent shaft and raise installation, exploration and ramp drifting and silling to prepare the A zone for 1994 production. Limited production of 250 tonnes per day is scheduled to commence from the 1-D in 1994 and gradually increase to full production of 3,600 tonnes per day by the year 2001. Production from the 1-C orebody increased to 1,400 tonnes per day at a grade of 3.1% nickel.

In the southern extension of the Thompson Nickel Belt, Falconbridge continued to search for new nickel deposits in the vicinity of William Lake, where promising nickel values were reported in 1992. In the Wabowden area, the company conducted a drill program at Setting Lake and geophysical surveys at Bucko Lake, Kiski Lake and Phillips Lake. A.L. Parres completed geophysics and a one-hole drill program at Setting Lake.

Westminer Canada conducted geophysical surveys and a 10-hole drill program on their Special Permit in the Fox River area. Geophysical surveys were carried out by Noranda (TSE) at Knight Lake, by Inco at Knee Lake and by C. McLeod at Walker Lake.

As for precious metals, Granduc Mines (TSE) — formed from the amalgamation of Cazador Explorations and Granduc Mines — brought the BT deposit into production at Lynn Lake.

After an infill drilling program in the spring and road construction in the summer, stripping of overburden commenced in August and gold ore was being milled by September. The first gold bar from the operation was poured Oct. 1 and the milling rate had reached about 1,000 tonnes per day by December. Granduc anticipates expanding the Lynn Lake mill to 1,800 tonnes per day. Granduc acquired the option of Golden Band Resources (VSE) to earn the 44.8% interest of Mingold Resources in the Farley Lake joint venture. Prior to this, Granduc signed a letter of intent to buy MMR’s 55.2% in the joint venture. Included in this joint venture is the Farley Lake deposit that contains open-pit minable reserves of 2.2 million tonnes of 3.4 grams gold per tonne.

In the Flin Flon-Snow Lake belt, High River Gold Mines (TSE) intersected 10 metres of 10.4 grams gold in a single-hole deep-drill program, in early 1993. This hole extended the Dick zone 150 metres further down plunge. Based on these encouraging results, High River commenced a 5-hole program to test the Dick and Ruttan zones at depth.

To increase their reserve base in the Snow Lake area, High River optioned a group of claims from W.B. Dunlop Ltd. that contain known gold reserves and adjoin the Nor-Acme property. Drilling on the Birch zone on the Dunlop property commenced in November and the third hole of the program intersected 16.6 metres of 7.86 grams. The Birch and the No. 3 zones, on the Dunlop property, were estimated to contain 743,000 tonnes grading 9.2 grams. Drilling continued in an effort to test numerous other gold occurrences on the Dunlop property.

At the Puffy Lake mine property, northeast of Flin Flon, Pioneer Metals (TSE) completed a feasibility study that recommended returning the mine to production at a rate of 750 tonnes per day. Pioneer has planned an infill drilling program for January, 1994. Proven and probable reserves at Puffy were estimated at 855,000 tonnes grading 6.7 grams gold.

Reopening of the former San Antonio mine at Bissett was considered. After receiving ministerial approval of “new mine” status, which would entitle the new operation to special tax benefits, Rea Gold (TSE) announced a $3-million exploration drill program to delineate new ore at depth. If successful, Rea would deepen the main shaft to the lowest working level. Minable reserves are estimated to be 1.36 million tonnes averaging 7.4 grams gold. On the diamond scene, in northern Manitoba Enterprise Exploration and S. Spelliscy acquired permits and claims north of the Flin Flon-Snow Lake belt, and in the Nelson House area. SouthernEra Resources (TSE) and European Ventures staked additional ground in the Wekusko Lake area, south of Snow Lake.

European Ventures completed a 5-hole drill
program on a kimberlite breccia just south of Wekusko Lake. SouthernEra conducted ground and airborne geophysical surveys in the Wimapedi Lake and Wekusko Lake areas, and Enterprise Exploration completed airborne surveys in the Kisseynew gneiss belt.

In southern Manitoba, large areas of ground were acquired. The major property holders in the south are S. Spelliscy and Indicator Exploration. As for other mineral commodities, at Pipestone Lake about 600 km north of Winnipeg, known occurrences of vanadium bearing magnetite and ilmenite have recently attracted new interest because of the unusually pure ilmenite. Gossan Resources (VSE), with a 51% interest, and Cross Lake Mineral Exploration, with a 49% interest, have staked 31 sq. km in the area and have signed an agreement to commence exploration on the property. (Cross Lake Mineral is controlled by the Cross Lake First Nation Indian Band.) In the Interlake region, high-purity dolomite was investigated for use as a raw material for production of magnesium metal. Tests for constancy of the stratigraphic section and to determine impurity levels within the dolomite were carried out.

— Bruno Esposito is assessment geologist, Winnipeg, and D. E. Prouse is resident geologist, The Pas, Manitoba Energy and Mines.