The Magnacon gold project near Wawa in northeastern Ontario continues to surprise, the vice- president of Flanagan McAdam Resources said at the company’s annual meeting.
J. T. Flanagan, who is also president of Muscocho Explorations, said underground exploration work recently uncovered a 14-ft-wide quartz vein grading close to 0.4 oz gold per ton. The open-ended vein, containing visible gold, has been traced along 210 ft to date.
Total reserves currently stand at 1.25 million tons averaging in the 0.24-0.25-oz range, including the 120,000 tons assaying 0.25 oz indicated by recent underground drilling.
According to Flanagan, the project is at the final exploration stage and a pre-feasibility study is under way. All exploration data should be in by the end of February, 1988. While no decision has been taken on a production start-up date or mill, the company is looking into construction of a 400-600-ton-per day mill.
The Magnacon project, Flanagan said, has “depth potential;” the deepest intersection to date is 1,300 ft. Underground workings comprise four levels to a depth of 550 ft.
Flanagan has a 50% interest in the project, while Muscocho and Windarra Minerals each have a 25% interest.
Flanagan President John McAdam said the company spent $4.3 million on exploration during its last fiscal year ending June 30, and currently has $10.8 million lined up (including flow-through funding of $7 million) for further exploration work.
Other gold projects the company is involved in include two in the Chibougamau area of Quebec on adjacent properties, the Gwillim Lake mop II and the Gwillim kod prospects. The kod prospect is a former gold-producing property.
Two other “grass roots” projects, Katzenback Lake and Mishibishu Lake, are located near the Magnacon property.
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