Highland-Crow plans dewatering program At Pickle Crow

A decison to dewater the No 1 shaft at the former producing Pickle Crow mine near here is expected to be made by the end of the month, officials of Highland-Crow Resources have told The Northern Miner.

If the go ahead is given, and it appears likely, it will be the first time the underground workings of this rich producer will have been accessed since shutting down in 1966. From 1935-1966, the Pickle Crow produced 1.4 million oz of gold — the majority of which financed the growth of Teck Corp. (Teck remains the largest shareholder of Highland-Crow, holding a 24.9% stake).

More importantly, however, the dewatering, underground exploration and 65,000 ft of diamond drilling — all part of a $3.3-million exploration program now under way — will provide the data required to mount a production feasibility study. The company has five drill rigs on site.

“We hope to be starting our detailed reserve analysis even before we finish our program,” Gordon A. Keevil, president of Highland-Crow said. “We expect to finish this program by the end of February (1987). By the spring of 1988, we hope to be building a mine and mill. That’s our objective.”

In order to achieve this objective, the company is embarking on a thorough examination of the various deposits on this large property covering more than five miles of favourable geologic strike. In fact, the Pickle Crow project is an exploration geologist’s dream, displaying at least four distinct styles of gold mineralization in separate deposits.

The task here will be to determine the mineability of these reserves, without spending too much money chasing every gold showing. And Highland-Crow has many gold showings warranting exploration. The company’s objective will be to develop proven reserves in the main zones, leaving the exploration and development of the other zones for a later date — hopefully at a time when the work could be financed from operating cash flow, Mr Keevil explained.

Work then, will concentrate on the No 1 and No 5 vein systems which were exploited by the old mine workings, and the ABC zone. Dewatering to the 750-ft level will enable crosscutting to take out bulk samples from both zones which are separated by 2,000 ft in an southwest-northeast direction. Workings at the mine were developed to a depth of 4,038 ft.

According to studies of the mining logs made available to the company by Teck, potential open pit reserves near the No 1 shaft stand at 450,000 tons grading 0.18 oz gold per ton to a depth of 200 ft. A crown pillar near the No 1 shaft holds 27,000 tons grading 0.56 oz gold per ton. At the No 5 zone, drill- indicated reserves from 1,500 ft to 3,800 ft total 1.5 million tons grading 0.2 oz gold per ton. During the tour of the property by a group of mining analysts and brokers, the stripped surface outcrop of the No 5 vein was examined. Discovered by Highland-Crow on surface, the quartz vein ranges up to 5 ft in width and displays rich sections of visible gold plastered along fracture planes.

Gold values are also found in the banded sulphide-rich iron formation which is cut by the quartz vein. “Previous workers at the Pickle Crow only mined the highgrade quartz veins on this property,” Mr Keevil explained. Numerous exploration teasers

Drilling on the No 5 vein will test three targets; the quartz vein, surrounding iron formation unit and the No 11 vein. The last one is a teaser, discovered by consulting geologist Daniel G. Innes, after pouring over old drill logs compiled by the Pickle Crow Mines staff. His research came across one drill hole which cut the No 5 vein at a depth of 300 ft, returning 20 ft assaying 0.96 oz gold per ton. Approximately 120 ft below, the hole intersected another subparallel quartz vein which assayed 0.5 oz gold per ton across 10.5 ft. Known as the No 11 vein, efforts to find its surface expression by Highland- Crow have failed, Mr Innes says. “If that No 11 is outlined and runs, it’s game over,” Mr Innes adds, commenting on the positive tonnage implications of finding a nearby subparallel vein to the No 5.

In fact, the story behind the No 11 vein is typical of this property, which has numerous similar targets. Approximately 9,000 ft northeast of the No 5 area, a large stripping program is clearing the ABC zone, located near the property’s northeast boundary. Again, a review of old records revealed several economic drill sections warranting following up exploration.

According to project geologist David Silversides, the ABC zone represents a large quartz stockwork. Both the disrupted iron formation and surrounding volcanic units run gold, company officials say. A detailed channel sampling and drilling program will test the area. Open pit potential at ABC

Based on initial results, Mr Innes says the area has preliminary reserves of 500,000 tons to a depth of 500 ft. With widths of more than 50 ft on surface, open pit mining is a possibility. At the nearby Albany mine area, also on the Highland property and 2,000 ft northeast of the ABC, reserves within the Albany porphyry intrusive total more than 90,000 tons grading 0.32 oz gold per ton, based on existing mine data. The Albany mine was developed by a 625-ft shaft.

Another important exploration target occurs 6,000 ft north of the No 1 shaft. Known as the Cohen- MacArthur zone, gold mineralization is associated with green carbonate-fuchsite mineralization – the type ore of the Kerr Addison mine near Larder Lake, Ont. Assays from the showing range up to 0.76 oz gold per ton across 6 ft.

Another valuable asset, apart from the gold on this property, is the financial backing available to the company. Not only does Teck maintain a close association, but Noramco, the private exploration and mine financing company controlled by R. A. B. MacDonald of Casa Berardi fame, has a 12.5% interest in Highland-Crow. Walking with Mr MacDonald along the dirt road running between the No 3 and Albany shafts, he noted “this will become the backbone of Noramco. This is our biggest project which we feel has the greatest potential.”

One feels then, that with such prolific players involved, if the 1986-1987 program proves up solid reserves which support a positive production feasibility study, cash for mine construction will not be in short supply.