Inco, High River cut big intersection

Located near Snow Lake, Man., the property is owned by High River Gold Mines (TSE). Inco Gold, a wholly-owned subsidiary of Inco Ltd. (TSE), has the right to earn a 50% interest in the project by placing it in production.

The drilling, part of a $6.5- million exploration program being funded by Inco, tested for the depth extension of several mineralized zones below the 1,780-ft level — the deepest level in the mine. The latest results demonstrate that mineralization in the Ruttan zone persists to at least 2,800-ft, David Mosher, a High River director, told The Northern Miner. “The Ruttan zone is wide open below that hole,” Mosher added. “We’re into big tonnages with these thicknesses. We’ve also established good geological continuity between levels.”

Additional drilling is testing for the lateral extension of the zone at the 2,880-ft level. Inco’s program is expected to be completed within a few weeks, Mosher said. During the underground exploration program, which included 60,000 ft of drilling, Inco has also been conducting an on-going feasibility study.

Based on a review of mine data, Inco calculated a reserve of 2.7 million tons grading 0.149 oz gold to a depth of 2,300 ft. When the results of the current program are included, Mosher feels the reserve estimate will be increase significantly.

High River anticipates a production decision this year leading to gold production by late 1990. At that time, High River would receive 20% of the mine’s cash flow until Inco is paid back its capital investment. Thereafter, mine cash flow would be shared equally by the two companies.

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