Nuinsco on schedule in Cameron project

Following the recommendations of partner Echo Bay Mines, Nuinsco Resources expects to move into the ore zone on its Cameron Lake gold project faster than the company had anticipated.

At a cost of $3.6 million the Echo Bay/Nuinsco partnership is sinking a ramp on a 2,400 acre property near the Kenora mining district. Drill indicated reserves on the main zone already stand at 1.6 million tons with a weighted average grade of 0.16 oz gold per ton to a depth of 1,100 ft. But Nuinsco President Douglas Hume expects delineation work to increase the value of the orebody.

After discussions with Echo Bay geologists, Nuinsco has changed the design of the ramp so that a 20,000-ft diamond drilling program, expected to begin next month, will be done from 365-ft rather than the expected 425-ft level.

Otherwise, shareholders at Nuinsco’s recent annual meeting were told that the company’s exploration activities are proceeding with working capital standing at $397,443 on Dec 31, l986 compared with $111,582 last year.

When phase one of the Cameron Lake project is finished in July 1987, the 16×12-ft ramp will have reached the 365-ft level and some 2,000 ft of drifts and crosscuts complete.

This first phase of underground exploration, which began in Dec. 1986, will allow Nuinsco and Echo Bay to prove reserves to determine mine grade, orebody continuity and process metallurgy. If the first phase of underground work is successful, a $3.1 million second stage would be undertaken at Echo Bay’s option.

Echo Bay currently holds 25.82% of Nuinsco’s 8.6 million shares, but the former’s participation will rise to 49.2% when work is completed.

Nuinsco has spent nearly $2 million on its Rowan Lake properties located six miles east of Cameron Lake. Drill indicated reserves stand at 200,000 tons of ore with a weighted average grade of 0.2 oz gold per ton. “Gold at Rowan Lake is almost identical to Cameron Lake ore and the two properties could be developed together,” said Mr Hume. However, the Rowan Lake project is on hold until drilling at Cameron is complete.

The company also holds three properties in the Noranda/Rouyn mining camp which it believes have considerable potential. They include the Lac Dufault and Aldermac properties which Nuinsco has explored with partner Seadrift International.

At Lac Dufault, several mineralized contacts have been probed yielding mineralization and alteration halos typical of known sulphide deposits in the camp. The Aldermac property contains the Aldermac mine, a former copper, zinc, gold and silver producer.

“Since the property is located in the Beauchastel twp. just east of the Noranda smelter, the discovery of even a modest tonnage of new ore would justify reopening the old mine,” said Mr Hume.

Nuinsco shares were trading on the Toronto Stock Exchange recently at $4.25, just below its 52-week high of $5.25 but well above its $1.08 low point.