EXPLORATION ’92 — Majors and juniors active in Ontario base

Despite Ontario’s apparently hostile policy toward mining, most major exploration companies feel that the province has good exploration potential for volcanogenic-hosted massive sulphide deposits. This strong potential, coupled with declining reserves of copper and zinc, has prompted both senior and junior companies to mount significant exploration programs.

In 1993 Falconbridge plans to spend $4.5 million on base metal exploration in northern Ontario. In an attempt to locate more ore to sustain its Timmins operations, 70% of the budget will be spent in the Timmins area. Most of the exploration will be centred around the Kidd Creek mine and on the old Kam Kotia mine property. Current reserves at the Kidd Creek mine are sufficient for about another 12 years of production.

Near the Kidd Creek mine, Falconbridge has optioned the White Star Copper Mines (CDN) and Chance Mining and Exploration (CDN) properties. The company is currently drilling on the White Star property.

Falconbridge has finally obtained the prospecting rights to the Kam Kotia mine property after lengthy negotiations with the Ontario government over the environmental liabilities associated with the property. The company will only be responsible for environmental problems arising from the current exploration, not past ownership.

The Kam Kotia mine, about 32 km west of the Kidd Creek mine in Robb Twp., produced more than 65,000 tonnes copper, 71,000 tonnes zinc, 174,000 grams (5,604 oz.) gold and 20.6 million grams (663,000 oz.) silver up to the end of 1972. Falconbridge has carried out a deep pulse electromagnetic (EM) survey on the property and recently started drilling.

The remainder of Falconbridge’s 1993 budget will be spent on grassroots exploration.

Frank Balint, exploration manager for Minnova’s (TSE) central Canada office, says that his company will have spent nearly $1.5 million on base metal exploration in Ontario by year-end and he envisions similar expenditures in 1993. Much of the budget has been spent around the Winston Lake mine where it is estimated that the reserves of 1.8 million tonnes at 1% copper, 13.8% zinc, 28.7 grams silver, and 1.2 grams gold will be depleted by mid-1997. On the mine property, Minnova is focusing its efforts on the deep Pic Lake zone, 1.5 km southwest of the Winston Lake shaft. Drilling on the Pic Lake zone, the top of which is at a vertical depth of 1,050 metres, has yielded intersections up to 25% zinc, 2.6% copper, 106 grams silver and 0.4 grams gold over 13.4 metres.

About five kilometres southeast of the mine, Minnova is exploring the Victoria Lake property which is jointly owned by Cumberland Resources (VSE) and Noranda (TSE). The property contains a large alteration system with disseminated and stringer copper-zinc mineralization. In 1992, Minnova drilled 3,700 metres on this property. The best intersection to date is 0.2% copper over 8.4 metres.

Minnova is also carrying out exploration in the Confederation Lake area near the old South Bay mine which produced 1.5 million tonnes at 3.5% copper, 14% zinc and 120 grams silver in the late 1970s and early 1980s. Exploration here has now extended the mine horizon for more than two kilometres. Noranda has allocated a minimum of $2.5 million for base metal exploration in Ontario in 1993. Most of the money will be spent on grassroots exploration, as they have no advanced projects at this time. They are looking mostly at Archean areas (primarily the Abitibi subprovince), but they are also active in the Grenville province in southeastern Ontario.

Noranda is also actively exploring around its Geco mine property in Manitouwadge where the current reserves of 6.1 million tonnes at 1.6% copper, 2.8% zinc and 37.3 grams silver are sufficient for another four years of production.

In 1993, Teck (TSE) plans to spend $1-1.5 million on base metal exploration in Ontario. They currently have 4-5 projects in progress that range from the grassroots to drilling stage.

During the past year, Cominco (TSE) had seven active base metal projects in Ontario, three of which were at the drill stage. In 1993, the company plans to maintain its presence in Ontario, but only three of its projects will remain active.

Cyprus Canada has one active base metal project in Ontario, but is aggressively seeking new opportunities. Cyprus is earning a 65% interest in the Hellens-Eplett Silver property in Cobalt from Toronto junior Starmin Mining (TSE). The property hosts a 6-12-metre-thick zone of cherty interflow sediments within a volcanic succession that has returned drill intersections up to 0.28% copper, 6.22% zinc and 137 grams silver over 2.1 metres. Several junior mining companies are also carrying out base metal exploration across the province.

Challenger Minerals (VSE) has started drilling on its Marshall Lake property 50 km northeast of Thunder Bay. Challenger is testing the down-plunge potential of the main zone where previous operators outlined preliminary reserves of two million tonnes grading 1.2% copper, 4.2% zinc, 84 grams silver and 0.4 grams gold.

On its Hurdman property east of Timmins, Noront Resources (VSE) has completed a ground geophysical survey that outlined seven new targets, 4-5 km southeast of the main mineralized zone. The main zone has been traced for over 400 metres along strike and has returned drill intersections up to 3.1% zinc over 18.2 metres (T.N.M., Jan. 20/92). Noront hopes to find a joint venture partner for the property or raise money to continue exploration. Goldbrook Explorations (ASE) and partner Castlewood Metals and Exploration (CDN) are trying to raise money to fund a 12,000-metre drilling program on their Onaman River property north of Beardmore. The program will test a number of geophysical targets that lie within an extensive alteration system. On its 50% owned Whistle Lake property north of Thunder Bay, Cumberland is seeking funding and/or partners to continue exploring a number of iron-rich base metal occurrences, one of which has returned values up to 0.85% copper and 0.75% zinc in grab samples.

Lyndex Exploration (CDN), a member of the Sheridan group of companies, has raised $200,000 to probe an untested geophysical target on patented ground the group holds in Carnegie Twp. near Timmins.