Report from Calgary Bighorn bullish on gold bet

An up-to-date information release by Bighorn Development Corp. paints an encouraging picture for the development of the company’s Island Lake gold project in northern Manitoba.

Further rehabilitation of the old shaft on the Main vein has been extended to the 220-ft level where 160 ft of underground development was undertaken. A substantial sampling program on 5- to 7-ft intervals was completed along portions of the shaft and the drift on the 220 level.

The Main vein structure was observed to be strong and well mineralized with average width greater than 5 ft. The quartz veins make up about half the width. In addition to the chip sampling, three 800-lb bulk samples were taken along the drift.

The total of the surface diamond drilling was increased to 6,136 ft. This portion of the program has extended the Main vein structure down dip a distance in excess of 830 ft. In aggregate, 72 drill holes have intersected this vein along a strike length of 1,150 ft. The structure is open at both ends and to depth. A portion of the 1987 drill program will attempt to explore the southern extension of the vein.

The present drill-indicated reserves of 112,592 oz gold are based on a strike length of 1,150 ft, 830 ft of down-dip extent, an average width of 6.1 ft and a grade of 0.39 oz per ton. This figure also assumes a 30% wastage and a dilution of 15%.

Exploration in 1987 calls for additional drilling on the Main vein, as well as the Climpy and Rex veins.

Calgary-based Golden Pacific Resources Inc. has recently made application for listing with the Alberta Stock Exchange. The company owns a lease to operate and mine the Penon Blanco gold-silver property located in Mariposa Cty., Calif.

The Penon Blanco lode claim covers a 6,400-ft length of the Motherlode structure which contains numerous quartz veins, often gold-bearing. Within the structure, on the property, two main veins have been identified. The East vein ranges from 3 ft to 6 ft wide, whereas the West vein is reported having widths from 17 to 32 ft.

Old reports indicate substantial underground development although only limited production has been registered. Past sampling of the workings, many of which now are in disrepair, show gold values from 0.198 to 0.60 oz per ton, with silver assays running 3.75 to 16.7 oz.

The company proposes a program of surface exploration and diamond drilling upon the successful raising of additional capital.

Calgary-based Petrotech Lavalin Inc. will be executing a $150-million contract for the second phase of the Astrakhan natural gas project in the Soviet Union.

This portion of the program includes installation of all facilities required to produce, transport and process sour gas and condensate from wells located near the Caspian Sea. The gas, which contains an average of 25.4% hydrogen sulphide, will be produced at a daily rate of 18.4 million cu m. Production, gathering station and trunkline systems will be expected to handle volumes of 6 billion cu m per year.

All systems must be designed for severe climatic conditions in an area where temperatures range from 42degrees to 36degreesC, and ground wind velocities reach 86 km/h. The area is also plagued with sandstorms and periods of heavy rainfall.

Canada Northwest Energy, which operates primarily in the gas/oil sector, is represented on three fronts in mineral exploration. In Australia, National Venture Corp. N.L. is a 71%-owned subsidiary which, in turn, holds 25% of Solomon Pacific Resources N.L. Solomon Pacific is primarily involved in the exploration for gold and strategic minerals in the western Pacific region and in Queensland.

Canada Northwest also owns 25% of PanCana Minerals, a publicly-traded junior Canadian gold mining and exploration company. PanCana is involved in the Goldstrike Joint Venture in the Carlin area of Nevada and in a dril l program on a farm-in property near Sutter Creek in the Mother Lode area of California.

The company also holds a one-third interest in Laramide Resources, a British Columbia public corporation, which has an interest in the Lara polymetallic deposit near Duncan, B.C., now being explored by Abermin Resources. Laramide also holds interesting gold prospects in the Kitimat and Aspen Grove areas of B.C.