Canuc, Orofino joint venture to explore Coronation project

Canuc Resources and Orofino Resources have concluded a joint venture agreement to explore Canuc’s Coronation Gulf gold property in Northwest Territories.

Under the agreement, Orofino can earn a 70% joint venture interest in the property by spending $5 million over six years and completion of a feasibility study.

The agreement also allows Canuc the option to buy back a 10% interest and assign part of its interest to another company.

Located 380 miles northeast of Yellowknife on the south shore of the Coronation Gulf, the 7,048-acre property contains a number of gold bearing veins and shear zones.

At this point, drill-indicated reserves from two veins stand at 855,000 tons grading 0.22 oz gold per ton. According to Canuc President W.J. Clarry, the gold-bearing structures are known to extend at least six miles. “Only around 10% has been adequately drill tested,” he said.

Closer spaced drilling on part of the north central vein has demonstrated the potential for higher grade areas through the definition of a drill indicated reserve of 210,000 grading 0.27 oz calculated over a 2-m width.

During l987, Orofino will begin a $250,000 summer mapping and geochemical sampling program to determine the full extent of the gold zones. This will be followed by a surface channel sampling and shallow drilling program to determine the highest grade areas for follow-up drilling.

Orofino is also having discussions with another company in an attempt to reassign part of its interest in the property.

A 68% owned subsidiary of Northgate Exploration, Orofino became a gold producer in l986 when production started at the Norstar joint-venture operation near Sudbury, Ont. In preparation for a production decision at its Scadding gold deposit near Sudbury, the company is starting an underground exploration program.

A surface drilling program to expand reserves at Orofino’s Red Summit gold deposit in the Red Lake, Ont. area is also under way.

According to vice-president Gerald Harper, Orofino’s gold production will rise to 10,000 oz per year if the Scadding mine comes on stream and the Swayze project could add 10,000 oz to the company’s annual production totals.

“While Orofino has several properties in Ontario where gold reserves are being defined, we are always looking for prospects with large-scale potential,” said Mr Harper.