Goldquest work tops $1 million

More than $1 million was spent in 1987 by Goldquest Exploration (TSE) on exploration work at its properties in the Red Lake area of northwestern Ontario, shareholders were told at the annual meeting.

Goldquest acts as an exploration arm for Dickenson Mines (TSE), which operates the A. W. White gold mine in the area. Dickenson, with a 40.2% interest, is the major shareholder of Goldquest, with Cambior Inc. (TSE) controlling a 19.5% equity interest. (Cambior is Dickenson’s junior partner at the White mine.)

In all, Goldquest holds 486 claims (in four blocks) covering about 19,500 acres in the Red Lake area. The company’s base of field operations is Balmertson.

Exploration activities during 1987 included trenching, stripping, access roads and drilling. “Stripping and washing of stripped bedrock areas contributed a wealth of geological information, but it did not locate any significant gold- bearing zones,” President John Kachmar says in the annual report. Year-round surface access is now available to the Rowan property.

During the year, 32,500 ft of surface diamond drilling were completed in 50 holes on the Rowan, Inore, Abino and Redcon properties. Dickenson’s senior exploration geologist, David Sannes, said 19 more holes, representing 21,000 ft, were drilled in February and March of this year.

At the Rowan property, three holes from the 1987 drilling returned 0.24 oz gold per ton over 2.4 ft, 0.34 oz over 1.1 ft and 0.95 oz over 1.5 ft. Ore from Rowan stockpiled in 1985 from a bulk test and processed last year produced 560 oz gold, Sannes said. Narrow vein widths have been encountered on the property.

Goldquest shares, of which about 8.24 million were outstanding at the end of 1987, were recently trading in the 52 cents range on the TSE.

The company is investigating joint venture possibilities to help finance drilling activity on its properties.

Elected to Goldquest’s board of directors were Jean Boissonnault, James Geddes, L. P. Gignac, R. E. Van Tassell and Kachmar.

Currently undertaking a bulk sampling test on property next to Goldquest’s Inore property is McFinley Red Lake Mines (TSE), which last year reported drill-indicated reserves of 890,000 tons averaging 0.19 oz gold on its property.