Kirkland Lake gets boost from Virginiatown operations

Associated with gold mining for a good part of this century, the Kirkland Lake area of northern Ontario is undergoing a revival of sorts in large part through the efforts of Deak Resources (TSE). The company, which acquired control of the old Kerr gold mine and mill at Virginiatown in a bankruptcy sale, has been working the property, and at a summer production rate of about 500 tons ore per day has been turning out a small amount of the precious metal.

Deak’s plans call for a rehabilitation and expansion of the mill to treat not only gold ore from northeastern Ontario properties, but base metal material from nearby projects in northwestern Quebec.

Once a hotbed of mining activity, Kirkland Lake today hosts but one gold producer, the Macassa mine of LAC Minerals (TSE) at the town’s western end. Within the Kirkland Lake area, to the north, sits another major gold producer, the Holt-McDermott mine of American Barrick Resources (TSE).

Macassa, which entered production in 1933, is expected to produce about 100,000 oz. gold this year, and the Holt-McDermott, opened in 1988, about 70,000 oz.

LAC has been drifting from its Macassa project on to the adjoining Kirkland Lake West property of Queenston Mining (TSE) in search of economic mineralization. LAC is earning an interest in the Queenston property by performing the drifting and other work and undertaking an underground drilling program.

The single largest property owner in the Kirkland Lake area, Queenston draws a royalty from the Macassa operation. Exploration project partners in the region include a number of major mining companies.

A letter of agreement was recently signed between Queenston and Mountain Lake Resources (VSE) which will allow Queenston to earn a 75% interest in Mountain’s Rand property in Teck Twp. in the Kirkland Lake area. One of Queenston’s area partners, Battle Mountain Canada, wants to incorporate the Rand property into its existing joint venture agreement.

Active in the area for a couple of years has been Armistice Resources (ME). The junior has been exploring property at Virginiatown adjacent to the old Kerr property, which produced gold under the ownership of Kerr Addison Mines (TSE) for about half a century. The property was sold a few years ago to Golden Shield Resources, which declared bankruptcy in 1989. Deak and an affiliated company, GSR Mining, then acquired the mine and mill in the bankruptcy proceedings.

Armistice designed an exploration program to test the theory that the Kerr mine orebody down-faulted at its western boundary, and continued on to the Armistice property. An existing shaft on the Armistice property has been deepened to 2,250 ft. and work areas (for drilling) on eight underground levels established.

Early this year, Armistice entered into an exploration agreement with Deak which will see the latter earn an approximate half-interest in the Armistice project. Planned by Deak is an extension of the existing 3850 level from the Kerr mine into the Armistice property and an underground drilling program to probe for deep Armistice mineralization.

Also benefiting from the Golden Shield bankruptcy sale was Northfield Minerals (ASE), which acquired interests in the Cheminis mine project and the adjacent Barber Larder property, west of Kirkland Lake. An affiliated Northfield company, Rockford Minerals (TSE), acquired smaller interests in the two properties. Deak and Northfield (and Rockford) have agreements covering the properties.

Bolstering its supply of future feed for the Kerr mine, Deak recently signed an agreement with Silverside Resources (TSE) to purchase the latter’s 87.5% interest in gold property in Garrison and Thackeray twps., north of Kirkland Lake for a total cost of $705,000.

A preliminary reserve estimate of 452,000 tons grading 0.15 oz. gold per ton is indicated for the property. Immediately exploitable by way of a shallow open pit, Deak says, is 50,000 tons grading 0.18 oz.

While its main focus is its Goldfields gold project in northern Saskatchewan, Greater Lenora Resources (TSE) continues to own property in Harker and Holloway twps., north of Kirkland Lake.

Generating excitement from the Lightning zone at their Harker- Holloway gold property, just north of the Holt-McDermott mine in the Matheson area, are project partners Freewest Resources (ME) and Noranda (TSE). A recent hole pulled 0.43 oz. over 64.3 ft. about 1,800 ft. below surface.

Sharing in the excitement is Teddy Bear Valley Mines (COATS), whose adjoining property hosts part of the western and downdip section of the Lightning zone. A trio of companies — Noranda, Freewest and Newmont Mines — has an option on the property.

Also near Matheson is the Garrison gold project of Jonpol Explorations (TSE) and affiliate T&H Resources (TSE). Additional funding is needed to undertake a deep drilling program and in this regard, a joint venture partner is being sought by Jonpol.

To date, mineralized zones at Garrison have indicated a high percentage of refractory ore. Deak has offered to process the ore at its Kerr mill through the use of either a roaster or an autoclave pressure leach system.