Cyprus Amax drilling hits new zone in Kirkland Lake

A new gold zone has been outlined on the Amalgamated Kirkland property in Kirkland Lake, Ont.

The discovery, known as the Cyprus zone, was made during a drilling program by Cyprus Canada, a unit of Cyprus Amax Minerals (NYSE). The property is owned by Queenston Mining (TYSE).

Situated near a volcanic-sedimentary contact, the zone is a west-trending, steeply dipping gold structure. It tested to a depth of 1,800 ft., measures 1,640×410 ft., and has an average thickness of 19.7 ft.

Some of the better intersections include 57.3 ft. grading 0.163 oz. gold per ton in Hole AK-48 and 41.7 ft. grading 0.311 oz. in Hole AK-52. The 9-hole, 4,700-metre program tested a reinterpretation of previous drilling by Battle Mountain (Canada), said Cyprus Exploration Manager Steve Parry.

Battle Mountain optioned the property in 1989 and explored it extensively with 37 holes, totaling 33,500 ft. In 1992, an intersection graded 0.17 oz. gold over 100.4 ft. (T.N.M., April 6/92).

According to Charles Page, Queenston’s executive vice-president, the property has been explored off and on since 1911. Early workers delineated three styles of gold mineralization hosted in quartz veins, syenites and green carbonate zones.

Page says mineralization in the Cyprus structure is slightly different, being hosted in a breccia zone accompanied by silicification, quartz veining and minor pyrite. “The better widths and grades seem to be in the volcanics,” he told The Northern Miner.

Cyprus can earn a 70% interest by spending $500,000 per year on exploration and providing Queenston with a positive feasibility report within 10 years. Queenston would also receive up to $900,000 in cash and may request production financing from Cyprus, once a production decision is made. If Queenston elects not to participate directly, it may receive a 3% net smelter return royalty upon initial production.

In January, Cyprus will resume drilling by testing the up-plunge and down-plunge extensions of the Cyprus zone, as well as drilling some stepout holes to look for parallel zones.

In other news, Cyprus has optioned Queenston’s Kirkland Lake West (KLW) property which is next to Lac Minerals’ (TSE) Macassa gold mine. Terms of the deal are similar to those that apply to the Amalgamated property. KLW hosts the “main break,” which has produced more than 24 million oz. gold to date. Between 1989 and 1991, Lac explored the property and encountered the break on four underground levels but failed to establish any economic reserves. However, in 1991, prior to terminating its option, Lac did mine and mill 172 tons grading 0.51 oz. gold.

Both Queenston and Cyprus believe KLW has the potential to host a substantial gold deposit along the extension of the Kirkland Lake main break. Cyprus is planning a 10,000-ft. program in January to test the break between surface and 5,000 ft.

Results from drilling are as follows:

Hole Core True Grade

Length Width (oz.

(ft.) (ft.) per ton)

AK-31* 16.9 8.1 .283

AK-39A* 84.3 11.6 .197

AK-45* 27.9 13.4 .185

AK-47 7.1 4.8 .198

AK-48 156.5 57.3 .163

includes 82.8 30.3 .255

includes 26.9 9.8 .532

AK-49 12.3 7.7 .137

AK-51 1.3 0.8 .529

AK-52 56.3 41.7 .311

includes 21.0 15.7 .591

*Prior Battle Mountain (Canada) holes