Underground at Eastmain for Placer, MSV

Driving of a decline ramp at the Eastmain gold deposit in northern Quebec is expected to begin within one month, John Morganti, exploration manager-Eastern Canada with Placer Development tells The Northern Miner. Held in joint venture with MSV Resources, which has the right to earn a 49% interest, the Eastmain deposit hosts reserves exceeding 1 million tonnes grading 15.3 g gold per tonne (0.45 oz gold per ton).

Site preparation for the ramp is in progress by crews from Canadian Mine Development; a mining contractor. “We’re looking at starting, optimistically, within the next month,” Mr Morganti says. Permits are still required for the construction of an airstrip which will facilitate the transportation of heavy equipment by aircraft. Presently, helicopters are being used to shuttle crews and gear to the remote project site, 185 miles northeast of Chibougamau.

Placer and MSV have also released results from 17 drill holes totalling 12,400 ft. The drilling was completed in the latter part of 1986. The objective of the program was to test the continuity and extension of the A and B zones. Also, two deep wildcat holes were completed. Both partners are encouraged by the first three holes which suggest two lenses in the A zone, A1 and A2, are actually the same unit.

Although the positive results are expected to only increase tonnages marginally, they will have a greater impact on grades. “We expect it will do more for grade,” Mr Morganti says. However, he notes that the full implications of the 1986 drill program will remain unknown until all the drill data is analyzed. Upon completion of the data analysis, Placer will recalculate the reserves and average grade of the deposit.

Two of the stronger holes which are expected to lead to grade improvements in the A zone are holes 87-2 and 87-3. The first cut 6.4 ft grading 1.01 oz gold per ton. The other hole intersected 5.7 ft grading an impressive 0.98 oz gold.

Mineralization is associated with a broad chert zone. Placer completed two deep wildcat holes designed to test for extensions of this favorable geological horizon. Not only did the hole intersect the zone above the 3,000-ft level, but hole 87-15 intersected a narrow zone of mineralization grading 0.44 oz gold per ton across 8 in. MSV, which trades on the Montreal Exchange, has been an active trader, moving up to the $3 range after trading for two months below $1.50. The company can earn its interest by spending $8 million on exploration by 1988. The company has 1.6 million shares issued, and pending the exercise of warrants and the issuance of flow-through shares, will have approximately five million shares issued.

Results from the drill program are listed below.

Grade Hole Width(ft) oz Au/t 87-1 11.8 0.37 87-2 6.4 1.01 87-3 5.7 0.98 87-4 3.6 0.03 87-5 13.8 0.32 87-6 3.6 0.01 87-7 2.9 0.03 87-8 13.5 0.30 87-9 13.8 0.69 87-10 8.8 0.36 87-11 15.2 0.02 87-12 10.4 0.25 87-13 visible gold, being reassayed 87-14 2.7 0.03 87-15 12.2 0.03 87-16 17.0 0.03 87-17 3.6 0.03