Report from Calgary Savanna focus on Turner-Albright

Operating from the premise that mineral markets are cyclical in natu re, Savanna Resources has assembled an inventory of interests in 10 mineral properties in varying stages of development. The company has taken advantage of general economic downturns, when competition is reduced, to acquire promising properties. Through careful spending and promoting development by others, the properties have been upgraded and half of the $7 million spent to date on its properties has been contributed by major companies.

Most of Savanna’s efforts are being applied to financing the development of the Turner- Albright mine, located on the Oregon-California state line, two miles west of U.S. Highway 199. Savanna holds a 72% interest in this polymetallic deposit, which preliminary studies suggest may be profitable at present commodity prices using known metallurgical technology.

The deposit has been known since the turn of the century, primarily for its gold content. Geologically, it has been identified as an ancient exhalative occurrence within pillow lavas.

Through drilling, reserves of 3.3 million tons have been identified, grading 0.114 oz gold per ton, 0.443 oz silver, 1.46% copper, 3.325% zinc and 0.55% cobalt.

The deposit is considered to have potential for the production of sulphur which has shown a sharp price increase on world markets. With this in mind, Savanna now is researching to obtain the most advanced metallurgical technology for treating the ore.

During the past year, a deep- penetrating pulse electromagnetic survey was run over the deposit. The results suggest an extension of the massive sulphide zone at least 600 ft east of the drilled area. The deposit is open at depth.

Plans are to reach the orebody by means of a 3,300-ft decline in order to obtain bulk samples for metallurgical testing and to prepare underground stations for diamond drilling the geophysically-indicated extensions.

Naneco Resources, through its wholly-owned U.S. subsidiary Minerva Explorations Inc., has entered into an option agreement to purchase the Johnson Gulch project from Homestake Mining Co. The property, located in South Dakota, has a geological mineable inventory, which includes probable, possible and inferred reserves of 1.75 million tons grading 0.06 oz gold per ton.

Reserve calculations were based on more than 200 diamond drill holes. The mineralized material lies mainly within 50 ft of the surface. Metallurgical tests performed on drill core and surface samples showed good gold recoveries by direct cyanidation.

To acquire the property, subject to a 13% net profit interest to Homestake and 6% to 6.25% net smelter royalties to original owners, Naneco must pay a total of $1 million(US) to Homestake.

Calgary-based Greenstrike Gold Corp. has announced a 3,000-m diamond drilling program on the Fifteen Mile Stream gold property of Pan East Resources Inc. in Nova Scotia. The property, located 11 km northeast of Seabright Resources’ Beaver Dam gold deposit, is a past gold producer with in situ geological probable and possible reserves of 214,000 tons averaging 0.22 oz per ton. The gold occurs within interbedded quartz veins and has gold-bearing graphitic and sulphide-rich slates in both saddle reef and shear zones within Cambrian slates and greywackes.

Bralorne Resources has experienced a 40% decline in demand for its products and services during the third quarter of 1986. As a result, gross revenue for the first nine months of this year was down 33% to $84.5 million, and a net loss of $9.8 million was experienced, as compared with net income of $1.85 million for the same period in 1985. Natural gas shipment levels were maintained at an average 11.8 million cu ft per day in spite of a 15% reduction in wellhead prices.

Snow Lake Mines, subsequent to a successful public financing, has transacted to acquire the 32-claim Snow Lake gold property near Snow Lake, Man. Proven reserves above the 400-ft level in the No 3 zone consist of 302,732 diluted tons, averaging 0.32 oz gold per ton.

The zone is open to depth and mineralized drill intersections are reported at the 800-ft level. In addition, other unexplored gold-bearing zones are scattered throughout the 7,670-acre property.

A diamond drill program is planned for this winter under the supervision of Silver Hart Mines. Silver Hart holds majority control of Snow Lake Mines.