Stroud gets set to go underground at Hislop

Junior Stroud Resources (SDR-T) is seeking funds to develop its Hislop gold project near Matheson, Ont., while, at the same time, putting the finishing touches on a joint venture in Indonesia.

The junior is currently negotiating to raise funds for a $5.3-million underground program at Hislop involving 1,050 metres of decline and 1,000 metres of drifting along the 100- and 150-metre levels. In addition, four raises will be driven between the levels.

Although the underground plan has been worked out, the start-up date has yet to be determined. The project is expected to last 1 year, including the time required to obtain necessary permits.

The decline and drifts will be driven into the Creek zone, which currently hosts proven and probable reserves (above the 200-metre level) of 724,000 tonnes grading 6.38 grams gold per tonne, or 149,000 oz. contained gold. The zone remains open at depth, and future exploration programs there will concentrate on expanding reserves in that direction.

Once development is complete, Stroud will begin production at a rate of 400 to 500 tons per day, for 20,000 oz. gold per year. Initial operating cost estimates range from US$220 to US$260 per oz., at a gold price of US$390 per oz. Stroud expects the mine to generate more than $4 million per year.

In addition to the Creek zone, the property contains the Creek zone extension, Main zone and V2 zone. The Creek zone extension and Main zone contain inferred resources of 197,800 tonnes grading 6.07 grams gold, and proven and probable reserves of 92,500 tonnes grading 5.83 grams gold.

Both zones are parallel to the Creek zone, and are situated 100 metres north.

The Creek zone extension has yet to be fully explored at depth.

The V2 zone, about 1 km northeast of the Creek zone, has been outlined over a strike length of 1 km and to a depth of 366 metres. The deepest hole bottomed in mineralization, and intersected 2 metres grading 11.7 grams.

Stroud plans to continue testing the zone with additional diamond drilling in the new year. The zone remains open to the west and at depth.

South of the Hislop property, the junior also has a 100%-interest in the Leckie gold project, about 2 km north of Temagami. Previous work there outlined two zones containing proven and probable resources of 367,400 tonnes grading 6.86 grams. Mineralization is open along strike and at depth.

In the meantime, Stroud is working to finalize a deal with Atapa Minerals (ATAP-C) to explore three properties in Lampung province on the Indonesian island of Sumatra. Stroud can acquire a 50% interest in Atapa Sum (which holds the property’s exploration rights) by spending US$1.4 million on exploration over two years, making cash payments to Atapa of US$95,000, and issuing US$100,000 in shares.

In 1997, the company

will manage and fund a US$400,000 exploration program aimed at identifying epithermal and porphyry gold deposits.

Meanwhile, about 30 km to the east-northeast, St Andrew Goldfields (SAS-T) is recovering mineralization from the Taylor deposit. Drilling in the West Porphyry zone of the deposit returned 5.5 grams gold over 24.5 metres (from 440.2 to 464.7 metres). Two high-grade intervals returned 44.2 grams gold over 2 metres (from 440.2 to 442.2 metres) and 6.8 grams gold over 5.6 metres (from 459.1 to 464.7 metres).

The high-grade intervals, according to the company, correspond in width, grade and depth to zones intersected in hole 79, collared 97.5 metres to the southwest. Exploration there continues.

The Taylor deposit currently hosts proven and probable reserves of 719,100 tonnes grading 4.94 grams gold. Current resources for the West Porphyry zone are 248,570 tonnes grading 7.2 grams gold.