BHP cuts sulphide mineralization near productive Matagami

Early indications suggest that BHP Minerals Canada has made a significant base metal discovery 35 km southwest of Matagami, Que.

Three holes recently drilled by BHP on Southern Africa Minerals’ (ASE) Caber property have each intersected two zones of massive sulphide mineralization at vertical depths of between 200 and 300 metres. The 133-claim property is next to the Phelps Dodge zinc deposit and covers a strongly chloritized exhalitive horizon where previous drilling yielded values of up to 4.22% zinc, 0.13% copper and 0.28% lead over 0.6 metres. This past February, BHP carried out a ground geophysical survey and drilled four holes to test the contact between the Watson Lake rhyolite and the Wabassee basalt. This contact, locally called the Key Tuffite, hosts all of the base metal mineralization in the Matagami camp.

The discovery hole, CB-94-5, was drilled to test an off-hole geophysical conductor that was detected during the first phase of drilling in February. This hole, drilled at minus 55, intersected an upper zone from 278.9 to 294.3 metres downhole, and a lower zone from 305 to 310.8 metres downhole. The upper zone graded 3.28% zinc, 1.79% copper, and 0.4 grams per tonne gold over a true width of 12 metres, while the lower zone assayed 10.35% zinc, 0.06% copper and 0.11 grams gold over a true width of 4.5 metres. A second hole, drilled from the same location (only at a steeper angle of minus 67) intersected the upper zone from 349.15 to 352.55 metres downhole and returned 5.54% zinc and 1.55% copper over a true width of 2.4 metres. The lower zone was cut between 364.38 and 366.83 metres downhole and yielded 0.78% copper over a true width of 1.7 metres.

Hole CB-94-8 — drilled at minus 55 and situated 100 metres north of the two previous holes — intersected the upper zone from 249.6 to 256.4 metres downhole and the lower zone from 284 to 286.15 metres downhole. The upper zone contained 6.65% zinc and 1.25% copper over a true width of 5.9 metres, while the lower zone returned 18.2% zinc and 1.84% copper over a true width of 1.9 metres.

Four additional holes have been drilled to date and assay results are pending. Rod Thomas, BHP’s exploration manager for Eastern Canada, tells The Northern Miner that the company is very encouraged by the discovery but cautions that these are but “early days.” He says more work is needed to evaluate the extent of the mineralization and that additional downhole geophysical surveys and further drilling are planned.

Closer to Matagami, Noranda (TSE) is exploring the Bell Allard South property, where drilling has outlined 5.1 million tonnes grading 11.4% zinc and 1.1% copper.

Noranda has two producing mines in the Matagami camp — Isle Dieu and Norita East. Last year, the two mines produced 83,544 tonnes of zinc, 5,033 tonnes of copper and 19.5 million grams silver (627,000 oz.).

As of January, reserves at both operations stood at 1.8 million tonnes grading 17% zinc, 1.06% copper, 82.7 grams silver and 0.62 grams gold. BHP can earn a 70% interest in the Caber property by spending $3 million on exploration over seven years and paying $250,000 over five years.