Tundra reserves exceed 25 million tons

A revised reserve figure has been calculated by partners Noranda Exploration (51%) and Getty Resources (49%) for their Tundra gold property located 130 miles northeast of Yellowknife, N.W.T. The new reserves firmly establish the Tundra deposit as Canada’s largest undeveloped gold resource.

Based on a grade cutoff of 0.1 oz gold, the deposit hosts 26.4 million tons grading 0.18 oz gold per ton. The reserves are classified as undiluted, possible geological reserves. At a cutoff of 0.2 and 0.3 oz, the reserves decrease to 9.3 million tons grading 0.26 oz and 2.1 million tons grading 0.39 oz respectively.

Last July, an estimate of reserves completed by The Northern Miner following a review of a three dimensional model and other technical data, concluded that the Tundra deposit could host reserves exceeding 20 million tons — a level which would make the deposit Hemlo- like in size (N.M., July 6/87). “I’ve been looking for a threshold of one million oz” of gold, M Richard C. Atkinson, president of Getty, explained to The Northern Miner. “We’ve exceeded that.” At the lower cutoff, gross in situ gold exceeds 4.7 million oz.

The new reserve estimate which was originally expected to follow the completion of the current exploration effort, sometime in the New Year, was prompted by a $125- million takeover bid by Total Resources (Canada), an affiliate of Total Compagnie Francaise des Petroles of France. “The (reserve) announcement was put out as a desire to ensure that our shareholders have full information to assess the offer,” Atkinson explained.

The French company is offering $10 per share for all the issued and outstanding common shares. If accepted, the shares must be tendered on Jan 11. Getty’s board of directors will be meeting on Jan 3 to consider the offer and have, under Toronto Stock Exchange regulations, until Jan 5 to either recommend that the offer be accepted or to decline. Wood Gundy has been retained as a financial advisor and a detailed evaluation of Getty’s assets is being conducted.

Total Resources is no stranger to Canadian mining. Via an affiliate, Total Erickson Resources, Total is involved with the Mount Skukum gold mine in the Yukon and the Erickson gold mine in B.C. Also, the company has acquired a lease with an option to buy the Hardcash mine property in Montana.

The Total bid is the second such offer for control of Getty. Last fall, Bow Valley Industries made a bid for a 30% interest in the company at a share price of $14.09 per share. That bid failed after Bow Valley concluded that the Tundra project was not advanced enough for its liking.

At the Tundra project, the plowing of a winter road is scheduled in Feb. This will allow heavy equipment, in preparation for a $25-million underground exploration program, to be transported by truck.

The awarding of a contract for a large portion of the underground work is expected to be completed in Jan., the partners say. Following the completion of the 2-year underground phase sometime in 1989, the partners will begin a feasibility study. If positive, then mine construction would require “two summers and one winter for completion with production beginning in early 1992,” Atkinson said. .N15

** Goldteck drill assays from Stairs property **

Low grading gold mineralization has been intersected by drilling on the Stairs property, Goldteck Mines says. Located west of Matachewan, Ont., the Stairs property was a marginal producer between 1965-66.

Results from two holes which were spotted to test previously unexplored ground, included 0.03 oz gold per ton across 18 ft. Another deeper section in the same hole intersected 2.3 ft grading 0.31 oz. Results from three other holes on the Wood Lake zone were low grade in nature, the company says.

A third drill rig has been added, which is testing another vein known as the Campbell. Also, the company has cleared debris from two declines which will permit partial underground access. Dewatering is also planned which will open up a section of the Pope vein for examination. Previous mining on the property focused on the Pope vein.