Getty to spend $10m. on 1987 exploration

With some excellent gold properties and a working capital of approximately $8.9 million, Getty Resources should be a key player on the Canadian exploration front this year.

The company went public last October in Toronto and since that time has participated in a number of important discoveries, including the Tundra project in the Northwest Territories.

In the fourth quarter, a total of eight diamond drills were exploring four gold projects and one base metal prospect. Exploration expenditures during 1987 are expected to exceed $10 million with the emphasis on developing reserves at the Tisdale, Tundra, Favourable Lake and Logan properties.

President Richard C. Atkinson says activities on the Tisdale project near Timmins, Ont., “continue to exceed objectives with physical progress continuing on schedule and within budget.” Test milling of a 7,250-ton sample of vein material has resulted in good recoveries by flotation and jig treatment (gravity concentration).

The exploration decline had advanced a total of 1,332 ft by Jan 26, representing 55% of its total length; crosscuts are also being driven to bulk sample the first and second levels of the main zone.

A surface drill program has yielded good results and a new gold- bearing vein was discovered in the hangingwall of the main zone. Infill drilling in the S zone returned economic gold values over mineable widths in a high portion of test holes which upgraded reserve blocks, he confirms.

Sixty-five feet below that zone, a parallel vein system has been discovered with one intersection returning 0.3 oz gold over 10.8 ft. The company says the intersection confirms previously reported values in this deeper area and could result in increased reserves. Pilot hole drilling prior to commencing the exploration decline encountered two more high grade veins.

This year’s exploration plans include more drilling within the existing S zone and also to the west.The new vein system near the mine portal will be tested as well as the depth continuity of the main zone structure below the 650-ft level. Depth continuity confirmed

Deep drilling has confirmed the depth continuity of the strong gold- bearing horizons on the Tundra gold property northeast of Yellowknife. The strike length at depth represents 2,000 ft of a mineralized zone known to extend for twice that distance on surface. Based on drilling results to date, the main gold zone is still open to the north, south, and also to depth.

Getty holds a 49% interest in the Tundra gold project with Noranda Exploration, the operator, retaining 51%. Their principal objective this year is to delineate at least five million tons of reserves grading 0.25 oz gold per ton. A 5-month exploration program involving some 30,000 ft of drilling in the main zone was to begin in February. The objectives of the program are three- fold: to delineate the deposit at depth; complete infill drilling between the 400-ft level and the recent deeper intersections for reserve definition; and to drill in detail the high grade near-surface portions of the deposit which could represent near-term production. Can earn 50% interest

By making additional cash payments of $200,000 and funding a further $2.5 million in work by Dec 31, 1988, Getty can earn a 50% interest in the large-tonnage zinc-silver Logan project in the southern Yukon. The project is located in the Midway area where Regional Resources has been evaluating a major zinc-lead-silver discovery. Fairfield Minerals is Getty’s partner and operator of the project.

Last year, 15 diamond drill holes were completed on the project, resulting in the discovery of a significant new deposit. The main zone mineralization has widths to 200 ft and reaches depths of 400 ft over a strike length of 2,000 ft. Values up to 7.2% zinc over a true width of 150 ft were obtained in the drilling. Higher grade massive sulphide zones averaging 14% zinc and 1.3 oz silver over 50 ft occur within this section. The zone is still open at depth and along strike.

Proposed this year is approximately 16,500 ft of drilling in 32 holes which would cost about $1.2 million. These holes will test the deposit to a depth of 825 ft and along 4,600 ft of strike. The objective of the program is to outline 10 million tons of reserves for commercial development.

Underground work should begin this April on the company’s Favourable Lake gold project 120 miles north of Red Lake, Ont. A 2-phase exploration program scheduled for the 1987-88 flow- through year represents a total budget of $7.8 million. Gold and silver mineralization occurs on the property in association with lead and zinc sulphide mineralization within quartz- carbonate veins localized in fault zones. At least 12 vein systems are known to exist on the property, one of which, the No 1 shaft zone, was the site of past production. Getty holds a 50% interest in the project and Zahavy Mines, the operator, holds the remainder.