Scramble Mining ends deal with Madeleine on Kenora gold bet

Scramble Mining, a wholly owned subsidiary of Boise Cascade, has terminated its joint venture agreement with Madeleine Mines (TSE) on the Scramble gold project, six miles from Kenora, Ont. The company is seeking a new partner to explore the various claims and private leases, including the small Scramble gold deposit in northwestern Ontario.

In 1986, Scramble Mining and Madeleine first entered into a joint venture to explore the property where about $2 million was spent on exploration, including underground work.

Nearly 50 diamond drill holes and 1,200 ft. of underground decline and sublevels were completed. That work outlined two mineralized zones, the company said.

According to Boise, the property hosts a high-grade zone with values such as 0.42 oz. gold per ton across 5 ft. in the hangingwall, and a wider low-grade zone with values on the order of 0.15 oz. across 9 ft. Rudimentary reserve estimates vary from 140,000 tons at a grade of 0.42 oz. to 270,000 tons averaging 0.18 oz.

The joint venture with Madeleine was terminated earlier this year, and ownership of the properties reverted back to Scramble Mining. The company said the gold zones remain open at depth and along strike. About $3.5 million would be necessary to develop the mine at a production rate of 140 tons per day, using conventional gravity/flotation milling, said Boise.