Atlantic report Rosy picture for Nova Scotia gold

Optimism about Nova Scotia’s gold mining future was the keynote of the Nova Scotia Chamber of Mineral Resources’ fifth annual meeting, held recently in Halifax. A gold exploration update was featured, with government and industry speakers discussing the potential for gold discovery in the province and their current programs.

Craig Miller, gold project geologist with the N.S. department of mines and energy, set the scene by reviewing the province’s gold mining industry and describing the character and variability in grade and size of Meguma-hosted deposits. The perception that many such deposits are saddle reef-type veins is false, he said. Nova Scotia mining history supports the possibility that its geological environment could host world-class gold deposits.

Structure is the important element in the formation of these deposits, Mr Miller said. Dilation zones were formed on the fold structured during deformation under conditions of ductile shear and greenschist grade metamorphism. These dilation zones vary in form and size from a few inches of bonanza gold to widths of 45 ft grading 0.14 oz per ton.

Mike Milner, geologist with Novacan Mining Resources of Halifax, told of that company’s regional exploration program for new discoveries away from former mining camps. Mr Milner described techniques being used and, in particular, the usefulness of the batea-type or conical gold pan for processing till samples and its superiority over conventional gold pans for recovering fine-grained gold.

William Burton of Consultec, Halifax, discussed Novacan’s program at its Fifteen Mile Stream property in Halifax Cty. Novacan has an extensive drill program in progress which has delineated a mineralized structure over a strike length of 500 m. The best results to date have been 0.16 oz over 5 ft, 0.14 oz over 20 ft and 0.12 oz over 24 ft. The company is awaiting results from recent holes.

MPH Consulting’s Howard Coates reported on the programs of Pan East Resources and Greenstrike Gold Corp. at Fifteen Miles Stream, Northumberland Mines at Goldenville and Greenstrike at Upper Seal Harbour, all being managed by MPH. At Fifteen Mile Stream, Pan East has established probable and possible reserves of 200,000 tons grading 0.2 oz on the basis of a 25-hole drilling program in 1985. The current program is “definition drilling” to extend known structures. Geophysics will define new targets for drilling. At Goldenville and Upper Seal Harbour, Guysborough Cty., drilling is under way to extend previously- mined ore zones.

David Duncan of Seabright Resources gave a progress report on activities at the Beaver Dam deposit in Halifax Cty. Recent “proven and probable” ore reserve calculations of 1.68 million tons grading 0.27 oz are to the 400-m level and “possible” reserves of 1.27 million tons at 0.27 oz are to a depth of 700 m, he said. Mineralized zones are still open at depth.

Three holes are planned to probe the extension of mineralization at a vertical depth of 2,000 ft and one hole will cut the zones at a vertical depth of 3,000 ft. Mr Duncan reported that the exploration ramp is at a vertical depth of 80 m with the target depth being 100 m. The mineralization occurs in two zones — the Papke zone, which is 6-7 m wide, and the Austen zone, which is 3-5 m wide. A 4,000-ton bulk sample from the zones will be processed at the company’s Gays River mill in Halifax Cty. later this year.

Seabright’s Ken Adams spoke on the Forest Hill deposit, where a shaft has been sunk and vein structures in the Schoolhouse zone have been explored by a series of drifts and raises. Surface exploration of other vein structures is ongoing elsewhere on the property.

William Felderhof, president of Toronto-based Jascan Resources, told of his company’s exploration programs at the Gold Lake, Salmon River (Dufferin) and Indian Path gold camps. At Gold Lake, Halifax Cty., 10 shallow holes were drilled last November to probe the Murchy, Queen and McPhail vein structures. At the Salmon River deposit in Halifax Cty., 2,000 ft of a planned 10,000 ft have been drilled. Jascan has earmarked $250,000 for its 1987 Nova Scotia programs.

Glen Covey gave an update of activities at Acadia Mineral Ventures’ Mooseland gold deposit in Halifax Cty. The Truro-based company has completed 5,000 ft of drilling, as well as IP, Mag and EM surveys. A veined dilation zone at depth has been interpreted to correspond to a change in dip of the fold axis. The company’s attitude towards the project is positive and it will be releasing information in the near future.

Dennis Forgeron of Coxheath Gold Holdings of Bedford, N.S., reported on the Tangier deposit in Halifax Cty. Drilling over the past year has probed the structure to a vertical depth of 1,400 ft. Visible gold occurred in all 25 holes, according to Mr Forgeron, and because the gold was coarse- grained, the company decided to go underground to bulk sample the zones. A decline was started late last year and 1,000 ft of ramp should be completed by the end of the month. Stoping will be done on the Twin, Marker and Nugget vein structures.

The activities of Torene Gold Exploration of Dartmouth were highlighted by consultant Tony Barrett. By reconciling the structure with assay inform ation from past and present drilling, the company has developed a model for the orientation of auriferous structures which has allowed it to predict where gold occurs, and drilling has confirmed the theory, Mr Barrett said. The best intersection to date has been 0.6 oz over a width of 9 ft.

The upbeat tone of the meeting was summarized in the luncheon address by Terence Coughlan, president of Seabright Resources, who predicted that exploration expenditures in Nova Scotia for 1987 will reach $20 million and could go as high as $60 million.