MINERAL EXPLORATION — Ventures drills base metals targets

Eagle, Alaska — Weak gold prices have induced Ventures Resource (vrs-v) to diversify its exploration activities to include base metals.

The company is drilling two lead-zinc-silver properties — Lead Creek and Champion II — on its land package in eastern Alaska.

President Gregory Sheardown tells The Northern Miner that the base metals projects represent a readjustment of exploration expenditures in light of current market conditions.

“We already have a good gold project at Flat in southwestern Alaska [T.N.M., Aug. 25/97], so we decided to take advantage of the increased interest in zinc,” he says. “Besides, we really like what’s coming out of the Champion drilling.”

Originally, the company had planned only 5,000 ft. of drilling at Champion, with another 5,000 ft. scheduled for gold properties in the Seventy Mile area, to the northeast, but it later decided to concentrate on Champion.

The company drilled six core holes at Lead Creek, situated 30 miles southwest of Eagle, and has completed six holes at Champion II.

Drilling at Lead Creek began in June and, to date, has totalled 4,000 ft. The holes targeted electromagnetic (EM) conductors from a previous survey. The area is coincident with a silver-lead-zinc soil anomaly measuring 13,000 by 5,000 ft.

The drilling intercepted a package of Paleozoic volcanic breccias and carbonaceous siltstones. Mineralization is characterized by intervals of pyrite, chalcopyrite, sphalerite and galena. Assays for the holes are expected in October.

Sheardown was pleased with the first round of drilling at Lead Creek, and, now that drilling has finished up at Champion II, the rig has returned to Lead Creek for a few more holes. Assays are pending.

The Champion II prospect, 10 miles west of Lead Creek, consists of a geochemical anomaly measuring 4,000 ft. by more than 3,000 ft. in an area of poor outcropping. The anomaly coincides with stratabound units in a chloritic schist. Skarn is present in the more limey units. The drilling, totalling 3,500 ft., tested the northern and western edges of the anomaly.

Ventures is looking for both volcanogenic massive sulphide and sedimentary exhalative deposits, with models such as the Red Dog lead-zinc mine in Alaska and the lead-zinc-silver deposits of the Finlayson Lake district in the Yukon.

The U.S. Geological Survey has approached Ventures to determine if mineralization at Champion is associated with mineralization at the Faro and Wolverine deposits at Finlayson Lake. The two areas are separated by more than 300 miles along the Tintina fault.

Ventures’ two targets — Lead Creek and Champion II — are part of a greater package of mineral lands held under agreement with the Doyon native corporation.

In eastern Alaska, the company controls nearly 2 million acres, which are divided among the Champion, Veta and Seventy Mile areas.

These blocks form the bulk of the 3-million-acre land package that Ventures has with Doyon. Over the entire acreage, the company has 92 known mineral occurrences that it calls early-stage projects, and 17 others that are described as mid-stage.

Work will be carried out on several of the 17 projects (including Lead Creek, Champion II and the Flat properties) during the remainder of the summer.

In the meantime, Watts, Griffis & McOuat is conducting exploration on behalf of Ventures at the other properties. Exploration in 1996 at the Seventy Mile area was limited to geophysical and geochemical surveys.

At the Wiseman property, north of Fairbanks, the U.S. Bureau of Land Management and the Alaska Division of Geophysical Surveys have completed airborne EM and magnetic surveys over the area.

To illustrate the renewed interest in Alaska, Sheardown points to discoveries at the True North, Pogo and Donlin Creek projects. He adds, however, that the regional play has two majors for every junior.

In 1995, the state government enacted a law which credits exploration expenditures up to US$20 million against taxes or royalties upon production at the property. Also in 1995, the state passed a law granting a 3.5-year hiatus from mining tax, based upon new production.