Noranda, Major General set reserve figure

Recent drilling results from the Rendell-Jackman gold project in the Springdale area of Newfoundland have allowed equal partners Major General Resources (VSE) and Noranda Exploration (TSE) to establish preliminary reserves on the Hammer Down discovery area. Noranda calculated reserves (undiluted) of 274,336 tons grading 0.35 oz. gold per ton (0.63 oz. uncut), using a cutoff grade of 0.09 oz. per ton, a minimum width of 5 ft. and an 82 ft. polygonal area of influence. (One method of establishing reserves involves drawing a polygon around a representative result from each drill hole. The result is then extrapolated out to the full area of the polygon — in this case 82 ft.)

When the area of influence was doubled to 164 ft., the reserves increase to 429,593 tons grading 0.34 oz. In both cases, assays greater than 1.0 oz. per ton were arbitrarily cut to 1.0 oz.

The recent drilling also established the western boundary of the Hammer Down zone. Five holes drilled below and to the west of holes 29 and 31, which cut 0.36 oz. over 32 ft. and 0.69 oz. over 16 ft. respectively (T.N.M., Feb. 19/90), failed to intersect any significant mineralization.

But to the east of the zone at depths of 125 and 177 ft., holes 32 and 42 intersected 2 ft. grading 1.0 oz. and 2.6 ft. grading 0.91 oz. (cut) respectively. According to Major General, these and other results indicate that the zone is still open to the east and at depth.

On the Rumbullion zone, 200 ft. to the south, four holes intersected three narrow (less than 2 ft.) zones of mineralization ranging in grade from 0.18 to 1.0 oz. per ton.

In addition to the main gold discovery, drilling on nearby geophysical/geochemical anomalies has revealed two other “intriguing targets,” said Major General President Byard MacLean. The newly discovered targets — one zinc-silver and one gold-copper — are likely to receive some attention during the next phase of drilling. Hole RJ-90-3 tested a coincident geophysical and geochemical anomaly and intersected a number of massive sulphide zones. The area is underlain by volcaniclastic units similar to those hosting the Buchans base metal deposit, 80 km to the southwest. Noranda has conducted a follow-up geophysical survey on the area to determine further drilling targets.

Holes RJ-90-6 and 7 tested the original Rendell-Jackman copper- gold deposit initially discovered in 1909. Hole RJ-90-6 intersected 70 ft. of chlorite schist containing narrow, massive sulphide bands.

Results from two of the seven holes drilled include: Width Copper Zinc Gold Silver Hole (ft.) (%) (%) (oz./ton) (oz./ton) RJ-90-3 16.1 minor 3.75 minor 1.08 15.4 minor 2.30 minor 0.22 RJ-90-6 2.0 1.24 6.50 0.42 0.57 2.3 0.82 0.22 0.20

Noranda is preparing a proposal for the next phase (phase 4) of exploration, which is likely to focus on the eastern extension of Hammer Down and on the two new base metal targets. The program will be delayed until ice breakup in May.