Nuinsco’s Cameron Lake ready for 2,700 ft ramp

Site preparations have been completed on Nuinsco Resources’ Cameron Lake gold property in readiness to drive the 2,700-ft-long ramp in the $3.6-million phase one underground exploration program funded by Echo Bay Mines.

The underground crews are moving onto the property which is located in the Kenora mining district of Ontario and the ramp will be started before year end, Nuinsco President Douglas Hume tells The Northern Miner.

The ramp will be driven from the west end of the Main zone on a 15 degrees angle, but rather than stopping at the 300-ft level as originally planned, it will now continue to the 400-ft level, with some 2,000 ft of drifting and crosscutting planned. Also, underground diamond drilling, geological mapping and bulk sampling will be completed.

This first phase is expected to be completed by the end of July, 1987. At that time, Mr Hume expects the proven tonnage and grade will be significantly higher than anticipated. Present estimates suggest the Main zone contains 1.6 million tons of drill-indicated ore grading 0.16 oz gold per ton to a depth of 1,100 ft.

If the phase one program is successful, a further program at an estimated cost of an additional $3.1 million is planned which is expected to lead to the feasibility stage. This second phase would involve extending the ramp to the 600-ft level and driving 3,500 ft of drifts and crosscuts to this elevation, with further diamond drilling, mapping and sampling planned.

In other company news, Nuinsco has reached an agreement with Dickenson Mines on a working option on the latter’s 911-acre gold prospect in Beauchastel Twp. in the Rouyn-Noranda area of northwestern Quebec.

The property abuts the western boundary of Nuinsco’s Aldermac 1,142-acre property, which includes the former Aldermac mine.

Under the terms of the agreement, Nuinsco can earn a 50% interest in the Dickenson property through exploration expenditures of not less than $250,000 by Nov 30, 1990.

Upon earning a 50% interest in the Dickenson property, the option may be converted to a 50/50 joint venture between Nuinsco and Dickenson, subject to pro rata dilution for failure by either party to contribute funds for ongoing exploration, development or mining.

Funding for the work on the Dickenson property is being provided by Vancouver-based Seadrift International, as part of a $500,000 joint venture agreement recently concluded between Nuinsco and Seadrift covering exploration on the former’s Aldermac property.

Under the terms, Seadrift can earn a 49% interest in Nuinsco’s Aldermac property through exploration expenditures totalling $1 million over a 5-year period. Seadrift has been assigned an interest in the Dickenson agreement and may earn a 49% interest in Nuinsco’s interest in the Dickenson option.

Nuinsco is operator of the Aldermac project. Mr Hume says that drilling with one machine was started the week of Nov 17 and a second drilling rig expected on site shortly.

Targets of the current program are poly-metallic massive sulphides in the area of the old Aldermac mine and tests of the gold zone that is believed to extend for over 2,800 m across the south portion of the Nuinsco and Dickenson properties.

The $500,000 program is to be completed prior to Mar 1, 1987.

Regarding Nuinsco’s 4,200-acre property in the Lake Dufault area which is under option to Seadrift, Mr Hume says that because the drilling targets are leading to the lake, work is slowing as crews wait for winter freeze-up. To date, Seadrift has spent approximately $750,000 out of its planned $2-million exploration program.