Exploration ’88 PEZIM GROUP

The exploration arm of the ubiquitous Pezim group of companies is now known as Prime Explorations (formerly Galveston Explorations). In North America, Prime will be involved in nearly 50 exploration plays and will spend more than $30 million in the search for gold, says James Foster, exploration manager. In Newfoundland, eight companies under the direction of Prime Capital Corp., the mine-financing house established last year by Murray Pezim, will be exploring properties in the Baie Verte Peninsula. (Prime Explorations will manage most of the exploration programs for Pezim group companies.) Cheryl Resources, Golden Havilah Resources, Hemlo Explorations, Pezgold Resource Corp. and Xanadu Resources have acquired well-located properties in the area. The Devil’s Cove Project, under option by Galveston Resources from Noranda, covers the initial gold discovery in the area made by Noranda in 1986. Last year, the Main zone at Devil’s Cove was drilled extensively and included some underground development. The zone has been penetrated by an adit, which returned an average of 0.47 oz gold per ton over an average width of 4.92 ft and a length of 75.8 ft. Two rigs are working on surface blocking out more reserves below the adit level. Noranda is also drilling a minimum of 3,300 ft from underground stations to explore for parallel auriferous zones. Other gold targets on surface will be evaluated this year, including a large gold geochemical anomaly in the Norman’s Pond area of the property. About $1.5 million will be spent this year.

Several gold occurrences were revealed by soil geochemical anomalies at the Pacquet project of International Impala Resources, under option from Noranda. Known as the Stog’er Tight Showing, the property has yielded good assays (for example, 13.4 ft of 0.193 oz gold per ton). Noranda is drilling the Main and Massive Sulphide zones on the Stog’er and plans to add a second drill.

Rounding out the Newfoundland activity is a large claim block optioned from Noranda by International Wildcat Resources. The property is adjacent to the western boundary of the Devil’s Cove project. Work this year is aimed at following up five gold showings discovered last year.

In Ontario, Prime will be operating the promising Windjammer project east of Matheson. This is a joint venture with Destiny Resources and Noranda. Two separate gold discoveries were made by drilling in 1987, including 31.2 ft of 0.272 oz gold per ton on the Iron Formation zone and 9.9 ft of 0.426 on the Fault zone. Two rigs have resumed drilling on both zones, and the project operator, Noranda, is considering adding a third.

“Operation Wawa” will also continue this year. This joint venture among Galveston Resources, Eagle Pass Resources and Tri Basin Resources spent $3 million during the 1987 exploration season blocking out drill-indicated ore reserves on the Murphy Lake mine and evaluating other gold occurrences.

In the Moss Twp. area, west of Thunder Bay, Prime Explorations is managing the projects of International Maple Leaf Resources, Tamavack Resources and ele Energy. Drilling is continuing on the Fountain Lake project, a joint venture between International Maple Leaf and Tamavack. This property adjoins that held by Tandem Resources and Storimin Exploration, which itself is undergoing intense exploration. Prime is also managing a drill program for ele Energy on its Burchell Lake project.

In Saskatchewan, the La Ronge area will be under intense scrutiny again this year. The most advanced play is the Waddy Lake project, under option by Placer Dome from Waddy Lake Resources. The property has reserves of 1.2 million tons grading 0.15 oz gold per ton in the Komis deposit. Placer Dome has been concentrating on other targets on the property. It discovered two new zones in 1987. Extensive drilling is planned this year.

Prime is also managing the Brownell Lake project, which is under option by Waddy Lake Resources from Carina Minerals. Drilling last year tested a number of known gold showings and extensive prospecting is planned this year. Other Prime Capital companies with land holdings in Saskatchewan are Danstar Resources, Halcyon Resources, ele and Achilles Resources.

In British Columbia, one of the more promising precious metals discoveries being monitored by Prime is the Dominion Creek project. Located near the town of Wells, the project is an option of Noranda and Brenda Mines to International Rhodes Resources. Mineralization occurs in the three east-trending veins and one north-trending vein structure in the South zone. The 2B Structure has a known srike length of at least 300 ft and core assays have run as high as 0.45 oz over 14.8 ft. Almost double that grade and width have been intersected on a parallel structure. More drilling and an adit are being planned for 1988.

In the Iskut River area, near Stewart, Prime is operating several projects for Norman Resources, Androne Resources and Ticker Tape Resources. The Androne property, under option from Skyline Explorations, adjoins the southern boundary of that company’s Johnny Mountain deposit. Prime will also be managing the Ursus project near Tofino on Vancouver Island, which was recently optioned by Corptech Industries from Pacific Sentinel Gold Corp.

In Yukon, the Grew Creek project of joint-venture partners Golden Nevada Resources, Noranda and Brenda Mines is proving to be one of the most significant finds of 1987. The best drill hole in 1987 returned an intersection of 103.3 ft averaging 0.337 oz gold per ton and 4.41 oz silver. Two rigs are drilling on this zone and operator Noranda plans to bring in a third rig to evaluate the Tarn zone, about 1 1/2 miles southeast of the main discovery.

Other Prime companies (such as Baywest Capital Equities, Argo Development, Gigi Resources, Norman Resources, Hemlo Explorations, Mintel International Development, Halcyon Resources and Wildfire Resources), have acquired land in the the Grew Creek area. This year, airborne geophysics, prospecting and geochemical-sampling will evaluate the potential of these properties.

In the Northwest Territories, Galveston has optioned a property east of Bathurst Inlet from Chevron Minerals. Surface prospecting last year indicated gold mineralization in a geological environment similar to the Lupin mine’s geology. Chevron plans a drill program this year. Prime Capital is also active in Nevada, where it has extensive land holdings within the Carlin Gold Trend through group companies, and in Montana, where its exploration arm is managing the Peerless gold/ silver project for Halcyon Resources.