Stewart area an anomaly of activity in idle B.C.

While exploration and development are declining in many parts of British Columbia, the region surrounding the historic mining town of Stewart, B.C., is anything but quiet.

The mineral-rich district is a bee-hive of activity once again this year, with work ranging from an advanced underground program by Lac Minerals (TSE) to grassroots exploration by a growing number of juniors.

The catalyst for this recent flurry of activity is Lac’s Red Mountain project, described by government geologists as an epizonal porphyry gold deposit. Underground exploration, already under way, entails driving a decline from the Marc zone to the AV zone to allow for underground test work. Lac intends to complete a feasibility study by year-end and then apply for a mine development certificate. The study will include an updated reserve, which is expected to be double the previously reported resource of 2.8 million tons grading 0.37 oz. per ton (using a cutoff grade of 0.088 oz. and a minimum thickness of 10 ft.).

Lac’s goal is to start production by early 1997. The proposed underground mine is targeted to produce 230,000 oz. annually, with ore to be processed in an underground mill.

Most of the work has been focused on the Marc and AV zones, where gold and silver mineralization occurs in structurally controlled lenses of coarsely grained, pyritic replacements and breccias hosted by volcaniclastic rocks and altered intrusives. Gold is present as microscopic native gold, electrum and tellurides.

Lac, together with the Cordilleran division of the Geological Survey of Canada, recently participated in an “industrial partners program” in northwestern British Columbia. The work entailed mapping a highly prospective region east of Stewart (encompassing Red Mountain) and between Kitsault River and American Creek. The team of geologists was able to provide more insight into the regional setting for the Red Mountain gold deposit and rate the potential for finding other such deposits in the area.

Geologists with the provincial mines ministry have also done work in the region. For example, District Geologist Paul Wojdak compared the gold mineralization and geology at Red Mountain with the Porgera deposit in Papua New Guinea. “Both are associated with high-level, volatile-rich hornblende diorite emplaced into ductile strata in an island-arc continental margin, collisional tectonic setting,” he reported. “Both are low-silica, high-sulphidation deposits; gold is associated with coarse pyrite, sphalerite (plus other base metals) and strong phyllic alteration. Both ore systems are characterized by hydrothermal breccias; gold mineralized zones are controlled by fracturing and intrusive contacts are important locales for ore.” Wodjak noted two significant differences — one being that gold recovery at Red Mountain is good while more than half of Porgera’s gold is refractory. “Secondly,” he continued, “there is a late, volumetrically small but economically important bonanza grade metallic gold-telluride-roscoelite vein breccia at Porgera.”

Lac’s exploration success at Red Mountain has prompted several juniors to stake or acquire claims in the region. A group of former Lac geologists, now associated with Alberta-listed Trev, picked up considerable ground and attracted Cameco (TSE) as a joint-venture partner.

Trev’s land package covers 60 square miles and is viewed by the company as being “highly prospective” because of a geological signature similar to that of Red Mountain. More drilling is planned for the Trev-Cameco properties this summer and exploration is taking place on Trev’s wholly owned claims, as well as on several claim-blocks optioned to other juniors.

Two associated juniors headed by Dino Cremonese have jointly staked more than 200 square miles of claims in the vicinity of Red Mountain. Teuton Resources (VSE) and Minvita Enterprises (VSE) are planning a grassroots program as part of their search for Red Mountain-type deposits. Separately, Teuton and Minvita have interests in several other properties in the region. Meanwhile, Donald McLeod’s Camnor Resources (VSE) is gearing up for a summer program in the region. The junior is earning a half interest in the Willoughby Creek gold property from Gold Giant Minerals (VSE) by spending $600,000 on exploration over three years (plus cash payments of $225,000 over the same period).

Exploration will begin in late June, to be headed by John Watkins, a former Lac employee and one of a team of geologists responsible for the interpretation of the controls of the Red Mountain deposit. Watkins has proposed a 2-stage program totaling $1.1 million. The first stage, to cost $550,000, will include 5,900 ft. of diamond drilling in 14 holes. Four targets will be tested, including an area where previous drilling returned 66 ft. of 0.73 oz. gold and 5.36 oz. silver per ton.

Also, Murray Pezim’s Prime Equities International (VSE) has proposed a $250,000 work program for the so-called Stewart property. The company can earn a half interest from Vancouver-listed KRL Resources. The initial prospecting and surface exploration will be followed by drilling in late summer.