Exploration heats up Northwest Territories

With the resounding success of the Lupin gold mine which produced nearly 194,000 oz of gold last year at its site just 56 miles south of the Arctic Circle, many junior companies are following the example of Echo Bay Mines and heading north to search for the yellow metal

One of the most exciting projects is the Tundra gold property held by Noranda Exploration Co. and partner Getty Resources. Located about 130 miles northeast of Yellowknife, the Tundra property was tested by a series of five deep drill holes this winter. The first two holes intersected wide sections of gold mineralization at depths exceeding 1,000 ft.

Previous work by Noranda outlined probable reserves of 1.28 million tons grading 0.28 oz to a depth of 400 ft in the Main zone. This zone, located on the Fat claim, consists of four lenses. Above the 400-ft level are three lenses, while below that level is a new lens to a vertical depth of 1,200 ft.

Approximately 6,000-m of drilling is planned on the Main zone which should be completed by May before break-up. The program will consist of fill-in holes and possibly more step-out holes. Once the program is done, the results from holes will be collated with a figure put on the geological reserve picture. Newcomer Neptune

One of the most recent comers to the Northwest Territories is Neptune Resources Corp. Under the leadership of President Peggy Witte, Neptune plans a 15,000 ton vat heap leach test at the 68-claim Colomac project, located 137 miles north of Yellowknifte.

The Colomac project is held under option from a private company called Johnsby Mines, in which Hydra Explorations and Discovery Mines each hold a 50% interest. Neptune can earn a 60% interest in the project by spending $4.5 million within the next four years to bring the property to a production decision.

Exploration work on the property prior to 1986 has defined 13 million tons grading 0.085 oz gold per ton in a zone 3,000 ft long, 160 ft wide and 600 ft deep. The mineralization is open on strike and at depth.

Ms Witte tells The Northern Miner that Neptune has accelerated its program and plans to complete a feasibility study next year with a production decision by Dec, 1988.

The Colomac project is a large tonnage low grade deposit. The vat leach process, says the company, will enable the gold to be recovered economically and will allow project capital costs to be cut. The process also uses a minimum amount of power, hence reduces operating costs.

Progress on the project to date includes the completion of the winter road to the site from Yellowknife, the set-up of the camp and the arrival of all the heavy equipment for the vat leach test. And over the next 18 months, some 40,000 ft of drilling is planned.

Based on pre-feasibility studies, the Colomac deposit is believed capable of supporting an open pit vat leach mining operation producing gold at a range of 100,000 oz per year. Mr Pezim’s Galveston

The mobilization of fuel and camp supplies is now under way to the 8,600-acre Slave project located about 140 miles northeast of Yellowknife. The project is to be a joint venture between Galveston Resources and Chevron Canada Resources. Galveston Chairman Murray Pezim says the agreement between the two companies is nearing completion.

The Slave project consists of the LB-1, 2, 3 and 4 claims and preliminary work on them has shown the presence of numerous showings of mineralized iron formation of the same lithology as the ore at Lupin, says Mr Pezim, adding Galveston is to fund this year’s program on the property which has been budgeted at $450,000. Treminco’s Gab

At the Gab property, located 52 miles northeast of Yellowknife, Treminco Resources, has completed a 2,500-ft drill program in the A Zone. Hole depths ranged from 50-200 ft and early cut assays have been as high as 2 oz gold over 4 ft, says the company.

The next stage of exploration will begin this spring and involves a combination of exploration programs to test favorable structures which exist between the A zone and the Cominco “Try me” property three miles to the southeast. If succesful, the company may drive a decline into the zone this fall. Troymin leases

An 11-hole diamonnd drill program totalling 1,589 ft has been completed by Troymin Resources on its recently optioned Mon group of leases located about 30 miles north of Yellowknife.

The leases were optioned last fall from Cominco whose previous work on the property has resulted in the identification of about 1,000 tons of reserves at a reported 3.35 oz gold per ton uncut in the shallow A zone.

Troymin’s drill program which was initiated to test the continuing of the A zone gold bearing quartz veins at depth intersected the veins. Preliminary assay results indicated anomalous gold concentrations ranging up to 0.35 oz over narrow widths in the veins and in the adjacent altered metavolcanics.

A new mineralized zone was also encountered beneath Cominco’s A zone in drill hole number 11. This new zone occurs at a lower metasedimentary metavolcanic contact and gold mineralization here is associated with shearing, hematization and carbonatization. Preliminary assay results from a 2.5-ft section within this zone returned 1.68 oz gold per ton. Savanna busy

Savanna Resources holds interests in some 13,241-acres of mining claims and leases ontrolling over 12 miles in the Courageous Lake area, located 150 miles north of Yellowknife.

Savanna and American Chromium Ltd. hold, respectively, a 65% and 35% interest in Courageous Exploration Inc. which has entered into a joint venture agreement with Bow Valley Industries.

Under the terms of the agreement, Bow Valley has the right to earn an interest in one of four claim blocks held by Courageous Exploration in the Courageous Lake greenstone belt. The joint venture lands are adjacent to and on strike with a Noranda and Getty’s Tundra gold project.

Bow Valley will be starting the first year’s exploration program with diamond drilling this spring. By reimbursing Courageous Exploration $1.15 million and spending $5 million in exploration before April 30, 1990, Bow Valley Industries will have earned a 60% interest in the joint venture lands.

South of the Sour Lake showing, Savanna has optioned a small block of its holdings to Cominco. Under the agreement, Cominco can earn a 55% interest in 2,200-acres by paying $200,000 and completing $1.25 million in exploraiton by Dec 31, 1989.

Further north, Savanna has entered into a joint venture agreement with Highwood Resources and Aber Resources that covers the Jax gold deposits. Limited exploration in the early 1960s outlined a deposit of 40,000 tons grading 0.40 oz gold per ton. Geophysical surveys completed last winter indicate a number of targets that will be drilled this spring. Colray and Placer

An exploration program including surface work and more than 9,000 ft of diamond drilling is planned this year on Colray Resources’ holding also in the Courageous Lake area.

Placer Development will be carrying out the program under its 5- year option agreement with Colray. This is the third year in the agreement.

Last year’s exploration program saw Placer discover three zones in the Dec 1 and Dec 2 claim groups containing sulphide mineralization with associated gold values. Colray says the mineralization encountered in these zones is similar to that encountered in Giant Yellowknife’s Salamita mine, 18 miles south of the Dec 1 and Dec 2 claim groups. Kim Claims

Work is progressing on the Kim claims in the Indin Lake area held by joint venture partners Comaplex Resources (18.75%), Echo Bay, operator with 75% and Petromet Resources with 6.25%.

A 5,400 ft drill program last fall tested the Cass zone along strike at vertical levels of 100, 200 and 300 ft. A 16,500 ft drill program started this January to test the Cass Zone on the 500 and 600 ft levels. This program is about 80% completed, reports Comaplex adding that the hope is to have grade and tonnage figures ready by the second quarter.