Thunderwood Res. starts drill program at Scott Lake bet

A 25,000-ft. drill program on the Scott Lake polymetallic property 12 miles west of Chibougamau, Que., has been started up by Thunderwood Resources (TSE) The drilling is part of $600,000 exploration program that began in May. It follows up on a 35,000-ft. drill program that ended early this year after confirming the existence of massive and stringer zinc-copper sulphides.

Particularly encouraging in that earlier drill program was the discovery of what Thunderwood calls a “major, new copper-rich stringer sulphide alteration zone up to 490 ft. thick.” A similar type of stringer zone led to the discovery of the Louvicourt base metal deposit by Aur Resources, a company that shares common management with Thunderwood.

The Scott Lake zinc deposit, which lies about 1,500 ft. southeast of the stringer zone, currently hosts 777,000 tons grading 6.87% zinc, 0.41% copper, 0.34 oz. silver and 0.01 oz. gold per ton.

In 1989 Thunderwood earned a 50% interest in the property from joint venture partner Greenstone Resources (TSE).

Thunderwood President John Heslop outlined the drilling program while reviewing three of the company’s key properties at the company annual meeting.

At the Gold Hawk property at Val d’Or, gold production from a small but high grade area of proven reserves is expected to begin “in the next couple of months,” said Heslop.

The 100% owned property hosts a proven, fully diluted ore reserve of 15,365 tons grading 0.70 oz gold in a narrow vein deposit. Heslop says the company plans to extract 10,000 tons in 1991 to produce about 7,000 oz. of gold. That would generate some cash flow to fund further exploration and development on the property.

Access to the property is from underground on the 750 level from the Kierans shaft on the adjoining First Canadian property held by Aur. Development work at Gold Hawk has already yielded 1,706 oz. of gold from custom milling of a 3,392-ton bulk sample in late 1989.

At Pelletier Lake, two miles southwest of Rouyn-Noranda, Que., Thunderwood plans to spend $2 million in 1990. That work will include driving a ramp to the 375-ft. level, underground development work and an 8,000-ton bulk sample.

Thunderwood, the operator, earned its 35% interest in Pelletier Lake property from joint venture partner Falconbridge Ltd.