Noranda intersects new Matagami zone

A surface drilling program by Noranda Exploration, a unit of Noranda (TSE), on its 100% owned Bell Allard South property near Matagami, Que., has intersected a new deep massive sulphide zone.

One of the holes (No. 92-28) graded 5.9% zinc, 1.15% copper and 23.7 grams silver per tonne over a true width of 45 metres.

The new zone is two kilometers southwest of the Matagami mill site and occurs at a vertical depth of about 915 metres. The deposit is localized near the intersection of a structural zone and the Key tuffite unit. The Key tuffite is a marker horizon that is associated with most of the Matagami area deposits.

Two other holes drilled about 183 and 335 metres west of hole 28 intersected similar base metal mineralization but over considerably narrower widths. A fourth hole completed 473 metres west of hole 28 at a vertical depth of 915 metres returned no significant values and closed off the zone in that direction.

Data from these four drill holes indicate that the ore zone is tabular in form and has a minimum strike and dip length of about 335 metres. The deposit is currently open along strike to the east and at depth.

With this new discovery, Noranda has put the exploration program on its Orchan property in the Matagami camp on hold. The Orchan deposit, discovered in September, 1991, has an estimated inventory of 1-1.5 million tonnes of massive sulphides. Although the Orchan zone is higher grade, present indications are that the Bell Allard zone may be larger in size. There have been nine producing mines in the Matagami camp, including the current producing Norita East and the Isle Dieu mines, both owned by Noranda. The Norita deposit which commenced production in September, 1992, contains reserves of 656,000 tonnes at 12.3% zinc and 0.86% copper. The Isle Dieu deposit, discovered in 1985, has reserves of 1.5 million tonnes grading 20.2% zinc and 1.1% copper. Both deposits also contain silver credits. Current reserves in the Matagami area are sufficient to sustain mining operations until 1996.

Noranda President John Harvey says that before proceeding with an underground exploration program on the Bell Allard deposit, the company will have to outline at least seven million tonnes of ore with a grade of 6.5% copper equivalent. To further delineate the deposit, two drills are now on the property and drilling will continue into the new year. To date, expenditures for the project are estimated to be $500,000.