Deak hits massive sulphides

rilling by Deak Resources (TSE) on the company’s Magusi base metal property in northern Quebec has cut 62 ft. of massive sulphide mineralization 325 ft. up dip from the discovery hole drilled in February and 1,670 ft. below surface. While no assays from this hole are available yet, the discovery hole intersected 10 ft. grading 8.2% copper within a package of 70 ft. of massive sulphides about 850 ft. below the main Magusi orebody.

The stepout hole, 91-5, was collared to test the high-grade copper horizon about 300-ft. up dip from the 10-ft. intersection in the discovery hole. The company’s 9,000-ft. drill program is part of a $250,000 campaign to find new base metal ore near the existing orebody.

“This is elephant country and we think we may be on to something big here,” said Doug Hume, a director of the company.

The stepout hole cut massive sulphides at 1.903-1,965 ft. in the hole. This zone is followed by 36 ft. of disseminated to massive sulphides followed by a further 15 ft. of massive sulphides, the company says.

“Better copper mineralization again appears toward the bottom part of the upper massive sulphide lens,” says Deak’s vice-president of exploration, G.F. Archibald. “Very find zinc, copper and other sulphide mineralization makes it difficult to estimate values.”

The company says it appears that the Foot Wall copper zone of the of the up-dip Magusi deposit may be a continuous horizon which has only narrowed or “necked down” at the 1,300-ft level before widening again at depth.

“The volume of disseminated and massive sulphide encountered in current drilling and supplemented by down-the-hole geophysics suggest the newly discovered deposit extends for significant dimensions down dip and laterally,” says the company in a news release.

Three drills are currently working in Range I of Hebecourt Twp., testing massive sulphide targets along strike and down dip from the known ore horizons of the Magusi mine. Upon completion, all holes will be surveyed with down-hole pulse EM geophysical equipment.

Deak acquired the Magusi deposit last year from Noranda (TSE) and is currently seeking funds to bring the mine into production using ramp access and blast hole mining. The orebody hosts minable reserves of 1.17 million tons grading 6.71% zinc, 0.3% copper, 0.065 oz. gold and 0.9 oz. silver per ton. A footwall copper zone hosts another 590,000 tons grading 2.86% copper.

The property’s total reserves are estimated at around four million tons grading 1.28% copper, 3.06% zinc, 0.027 oz. gold and 0.89 oz. silver per ton. The current work will determine if more ore exists in close proximity to the mine.

Noranda has the right to back in for a 50% interest in the property at any time by paying 200% of Deak’s expenditures.

Meanwhile, the Northern Ontario Heritage Fund has approved a $2.1-million loan for improvements to Deak’s gold mining and milling operations at Virginiatown, Ont. A mill rehabilitation program is under way with expansion to 1,500-tons-per-day expected by April.

Because of disruptions during the mill modification process, mining activity at the Kerr mine was reduced and some employees were placed on temporary lay-off. Recalls will occur when operations are increased to 2,200 tons per day.

Feed for Deak’s mill will eventually be provided by the Kerr mine as well as Deak’s Buffonta open pit at a rate of about 1,100 tons per day. Additional custom feed will come from Rouyn Resources’ (TSE) Francoeur mine, Northfield Minerals’ Chemenis mine, as well as another mine owned by Radisson Resources (ME). Other sources of custom ore include Armistice Resources’ (ME) property which is adjacent to the Kerr mine. Discussions have been held with other potential custom ore suppliers, also.

Deak’s shares recently gained 10 cents to close at 43 cents on The Toronto Stock Exchange. The company expects to have a fully diluted capitalization of about 23 million shares by 1993.