LAC gets good values on Jonpol bet

Good grades and widths are being confirmed by underground drilling on the Garrison Twp. gold project owned by Jonpol Explorations (TSE) and T & H Resources (TSE) in northeastern Ontario.

The property, 22 miles east of Matheson, Ont., is the site of a $3.25-million underground exploration program by the juniors. Senior partner LAC Minerals (TSE) has an option to earn a 50% interest in the project.

Jonpol President John Pollock told The Northern Miner the exploration shaft has been completed to a depth of 476 ft. with one diamond drill station established at the 250-ft. level and two drill stations on the 476-ft. level.

Diamond drill results from the two underground drills which intersected the gold zone to date are as follows: 0105,0403,0306,0204,0000 From-ToWidthGold Hole(ft.)(ft.)(oz./ton) U-1246 -257 11 0.34 246 -277 31 0.14 U-2333 -343 10 0.22 309 -343 34 0.11 U-3272.5-283 10.50.24 U-11262 -265 3 0.74 262 -283 21 0.13 U-34235 -249 14 0.21 284 -293 9 0.23 U-41298 -308 10 0.19 298 -318.520.50.14

According to the above results, the best intersections occur within wide zones ranging up to 34 ft. and grading better than 0.11 oz. gold per ton.

Pollock said a crosscut was driven 600 ft. to the mineralized zone and drifting is now well under way. The purpose of the drifting is to establish continuity of the zone and obtain a bulk sample for grade determination and metallurgical testing. The gold occurs associated with pyrite and arsenopyrite in talc- chlorite volcanic rocks.

So far, Jonpol has drifted for a length of about 250 ft. in the gold zone, with a target of 400 ft. set for mid-February. All drift rounds are being stored separately on surface for testing later in February.

Although still at an early stage, Pollock estimates the project would require a gold price of at least $500 in order to be economic. “Nowadays, a company needs to have at least $100 rock across 10-ft. widths to be economically viable,” he said. That means grades of at least 0.20 oz. are needed across minable widths of 6 ft. or better.

In order to earn its full 50% interest in the project, LAC would have to spend another $9.7 million, place the deposit into production, and make $1.5 million in additional cash payments, said Pollock. LAC might be expected to make a decision regarding the Garrison project by the end of February when all results of the underground work are available.

“Whether LAC will decide to remain as our joint venture partner will probably not be known until after February,” said Pollock. “LAC has some pretty big projects following its recent Bond acquisition, and perhaps this on e will be too small for them now.”

So far, about $3.25 million in flow-through funding has been spent on the shaft-sinking and underground exploration work in Garrison Twp. If LAC elects to proceed and earn its full 50% interest, Jonpol’s interest would then become 32% while T & H would hold an 18% interest in the project.

Before the underground program began last fall, preliminary reserves were estimated at 1.3 million tons averaging 0.23 oz.