EXPLORATION ’87 QUEENSTON

In 1987 Queenston Gold Mines will be concentrating its efforts on suitable arrangements for expanded exploration of its principal Kirkland Lake area gold properties. Regarding the company’s wholly-owned Kirkland Lake West property, to the west of Lac Minerals’ Macassa gold mine, Queenston remains optimistic that the system of orebodies occurring on the Macassa will continue on to this property. Various exploration programs are being investigated.

Ten miles east of Kirkland Lake, Queenston (35%) with joint venture partner, Inco Ltd. (65%), the project operator, is considering a plan to step up exploration drilling surrounding the Biroco, Esker and Anoki gold zones, west of the McBean open pit. Geological studies and drilling by Inco in 1986 confirm that many similarities exist between the Biroco-Esker areas of the joint venture lands and those occurring on Queenston’s Upper Canada mine property. This, in turn, opens up an additional target area warranting drill tests. Meanwhile Queenston is reviewing its options to step up exploration on its wholly- owned Upper Canada mine property.

The McBean mill, owned by the Inco-Queenston joint venture and located on the Upper Canada mine property, is expected to treat custom mill feed for much of 1987. It’s available for the processing of possible Queenston-Inco joint-venture ore or possible Queenston Upper Canada ore — a distinct advantage when considering any future Queenston gold ore developments in this region.

Queenston (33 1/3%), as operator, is participating with Falconbridge Ltd. (33 1/3%) and Bruneau Mining Corp. (NPL) (33 1/3%) in a continuing drill program in the Detour Lake region of northwestern Quebec. The joint venture holds a total of 680 claims encompassing what may be a major new gold-bearing environment. The properties are about 20 miles east of the Detour Lake gold mine, in northeastern Ontario, and 10 miles north of the Selbaie gold-copper mine, in northwestern Quebec. The current drill program was expected to have been completed by early February. Continued encouraging results to date suggest that drilling will be resumed later in the year when results of the current program have been received.

In a separate joint venture with Queenston (33 1/3%), Bruneau Mining Corp. (33 1/3%) and Canamax Resources (33 1/3%), assay results from the 198 6 drill program, when received, will help guide decisions for a possible 1987 work program. This project focusses on the Porcupine-Destor gold structure. The joint venture properties are in Destor and Manneville twps., 25 miles northeast of Noranda, Que. The partners are impressed by the favorable “gold geology” encountered in the initial 4-hole drill program.

During 1986 Queenston spent about $1 million on surface exploration while partners spent an additional $1.1 million (approximately) on properties in which Queenston has interests. Although the nature of the 1987 exploration programs was not determined at year-end, it is anticipated that combined expenditures in 1987 will be similar to those of 1986, possibly greater. Queenston continues to investigate additional precious and base metal property acquisitions in both Ontario and Quebec.