Exploration ’88 PLACER DOME

Canada’s newest gold mining giant, Placer Dome, is boosting its exploration spending to $51.9 million in 1988, an $11.6-million increase over the 1987 budget. But unlike Noranda, which has hungry base metal mills to feed, Placer Dome is allotting nearly 90% of its exploration budget to precious metals. Slightly more than half the total amount will be spent on Canadian plays, says John Morganti, the company’s exploration manager for eastern Canada. Among its more advanced projects, Placer Dome lists the Eastmain project in Quebec and the Seabee in Saskatchewan. (The Dona Lake property, in northwestern Ontario, has moved beyond the exploration stage.) At the Seabee, underground development last year measured 2,725 ft to a depth of 460 ft. Seventy-two underground diamond drill holes were collared. Geological information from the underground program is being compiled to recalculate ore reserves in preparation for an engineering feasibility study. As part of the overall Seabee program, environmental projects are also under way, Morganti says.

At the Eastmain property, east of James Bay, the estimated mineral inventory remains at 1.1 million tons grading an average 0.44 oz gold per ton, 0.49 oz silver and 0.27% copper. These reserves are located in four closely spaced zones. The A1 zone has proven reserves of 114,862 tons grading 0.46 oz gold per ton. In 1987, the underground program consisted of a 3,484-ft decline. Msv Resources can earn a 49% interest in the property.

Results from both the Eastmain and the Seabee are being evaluated with an eye to pre-feasibility studies. A pre- feasibility study is under way on the potential for Placer Dome’s qr property, near Quesnel, B.C.

Exploration will also continue at Currie Rose and Waddy Lake in northern Saskatchewan, the Colray project in the Northwest Territories, and Spruce Creek in northwestern British Columbia. In the Casa Berardi area of Quebec, Placer Dome has a 37.6% interest in 17 claims that are being explored in a joint venture by Inco Ltd. and Golden Knight Resources. One spectacular intersection cut more than 74 ft of 0.37 oz gold per ton. Exploration will continue on this property, Morganti says.

Drill programs were conducted on another 22 properties in Ontario and Quebec, and five of these — all gold discoveries — warrant further work, the company states.

In the U.S., Placer Dome is expanding its activities in a search for additional reserves near its operating properties at Golden Sunlight, McDermitt, Cortez and Bald Mountain. An especially promising exploration project near Nome, Alaska will also be a prime target. Last year, extensive mapping, trenching, sampling and drilling disclosed several good prospects on a 17,000-acre property. Rock Creek and Snow Gulch are two such prospects.

Among its non-gold holdings, the Beluga coal project in Alaska and a possible pebble-lime-producer in northern California will be the focus of further efforts.

In western Australia, the Big Bell gold deposit, near Cue, is being developed. In Queensland, the Mount Rawdon gold find is the site of exploration and evaluation work. Geological reserves for this potential open-pit operation were set at 28.6 million tonnes grading 1.0 g gold and 4 g silver per tonne. That was back in 1986. Revised figures have yet to be calculated. A zone of gold mineralization has also been identified at Cooper Range in Queensland. Further definition work is to be done this year.

Placer Dome is also outlining the reserve potential on gold prospects in northeastern Sulawesi in Indonesia and on the potential open-pit Omai gold property in Guyana. A Georgetown office was opened to co-ordinate the activity in Guyana. Last but not least is the company’s 1987 gold discovery in Fiji. The company says it is evaluating the significance of the find.

The company has offices in Val d’Or, Que.; Toronto, Timmins, and Red Lake, Ont.; Vancouver, B.C.; Reno, Nev.; San Francisco, Calif.; and Sydney, Australia.