EXPLORATION ’93 — Quebec base metal scene heats up

Based on the current levels of exploration and the number of advanced projects being developed, Quebec appears to be one of the hottest places in the country to search for base metals. Most major Canadian exploration companies are mounting significant programs in Quebec to locate volcanogenic massive sulphide (VMS) deposits.

At the Louvicourt deposit near Val d’Or, which is being developed for startup in 1995 by Aur Resources (TSE) and Teck (TSE), work is proceeding on schedule.

Aur has a 55% interest in the Louvicourt project, with Novicourt owning the remaining 45% interest. (Teck is a major shareholder of Aur, while Novicourt is controlled by 57% owner Noranda Minerals.)

Aur President James Gill told The Northern Miner that the 750-metre exploration shaft has now reached a depth of 675 metres and that the 965-metre production shaft is down 475 metres. Exploration drifting is expected to commence in late April or early May. Once the drifting is completed, drilling on 30-metre centres will be carried out to further delineate the orebody.

Current diluted minable reserves stand at about 24 million tonnes grading 3.89% copper, 1.95% zinc, 1.2 grams gold per tonne and 31 grams silver. Expenditures on the project now total around $70 million.

Aur is also planning to spend about $1.6 million on base metal exploration in the Joutel area and on other properties near Val d’Or.

Exploration is ongoing on the Bonfortel property, near Joutel, where recent drilling returned a 1.9-metre intersection averaging 1.09% copper, 10.36% zinc and 60.4 grams silver.

On the Louvex property, which adjoins the Louvicourt mine, Aur is planning to spend $500,000 on diamond drilling this spring. In 1991, the company discovered the 84 Horizon, about 150 metres south of the Louvicourt deposit. Intersections from this horizon have included values up to 1.03% copper over 12 metres and 1.27% zinc over 9.1 metres, accompanied by strong hydrothermal alteration.

Further south on the property, near the copper-zinc-silver occurrence known as the Zakor zone, encouraging stringer mineralization averaging 0.43% copper over 38.7 metres has also been intersected.

Teck has two advanced base metal projects in Quebec, the Tache Lake project near Chibougamau and the Tonnancour Twp. property south of

Lebel-sur-Quevillon.

At Tache Lake, Teck is earning a 60% interest from Greenstone Resources (TSE). The property contains a zinc-gold deposit and several other promising massive sulphide zones. A previous operator calculated probable reserves of about 564,000 tonnes grading 18.9 grams gold and 3.3% zinc in the Main zone to a depth of 122 metres.

A recent hole near the Main zone intersected 43 metres of 5.5% zinc and 3.8 grams gold, including 13.4 metres averaging 7.31% zinc and 9.3 grams gold. Teck is planning to spend about $250,000 on the project in 1993, mostly on drilling.

Also in the Chibougamau area, Thunderwood Resources (TSE) has started a 3,600-metre drill program on its Scott Lake property. The company is trying to expand the reserves of a new zinc-copper-silver zone in the centre of the property. Scott Lake is a 50/50 joint venture with Greenstone. Cambior (TSE) has two advanced base metal projects in northern Quebec, Grevet and Mobrun.

The Grevet deposit, about 30 km northwest of Lebel-sur-Quevillon, is half-owned by Cambior (through its 100% ownership of VSM Exploration (ME)) and half by Serem-Quebec.

Cambior recently commenced a $26.3-million underground exploration program on the deposit where reserves total 10.6 million tonnes of 8.5% zinc, 0.5% copper and 36.7 grams silver. At the end of February, the shaft collar had been completed and sinking of the 914-metre shaft was under way. The program also includes 1,500 metres of drifting and 3,870 metres of drilling. Robert LaValliere, Cambior’s manager of investor relations, said the company hopes to complete the exploration program and a feasibility study by February, 1994, and begin commercial production by the third quarter of 1995. At the Mobrun deposit, near Rouyn-Noranda, a recent fire has delayed the $7.3-million underground exploration program by at least two months. The Mobrun deposit is a 50/50 joint venture between Audrey Resources (TSE) and Minnova (TSE). Cambior has a 65.35% interest in Audrey.

Cambior is planning to deepen the shaft to a depth of 762 metres and carry out mine development and diamond drilling to delineate the 1100 lens below the 4650 level. Proven and probable reserves in the 1100 lens are 7.6 million tonnes at 0.7% copper, 4.4% zinc, 32.6 grams silver and 1.2 grams gold. Should the new exploration fail to delineate sufficient reserves to justify a 2,800-tonne-per-day operation, Minnova can elect to revert to a 4% net smelter return royalty.

Including the Mobrun deposit, Minnova is spending about $2.4 million on base metal exploration. Elsewhere, the company’s efforts are being focused on its Lac Dufault property, which has hosted many of the prolific copper-zinc deposits in the Noranda camp.

In the Matagami area, Noranda (TSE) is continuing to explore the Bell Allard South property where, late in 1992, it announced that it had intersected 5.9% zinc, 1.15% copper and 23.7 grams silver per tonne over a true width of 45 metres (T.N.M., Dec. 14/92).

The company has two drills operating on the project. Although no new results have been released, a Noranda spokesman said additional sulphide mineralization has been encountered in a hole wedged off the discovery hole. An additional hole has also been drilled on the company’s Orchan property, which contains estimated reserves of one million to 1.5 million tonnes of massive sulphides. Results from the new hole were inconclusive and further work has been put on hold.

The initial 1993 budget for exploration in the Matagami camp is $2 million. Noranda is spending an additional $1.3 million on base metal exploration in the rest of the province, excluding the Gaspe Bay area.

Having acquired full ownership of the Selbaie copper-zinc mine from BP Canada in late 1992, Billiton Metals Canada is planning to spend $3-4 million exploring the deposit in 1993.

Ore is being mined underground from the A-2 and B zones, and from the A-1 zone open pit. The company plans to suspend underground operations at the end of 1993, after which time production of 7,270 tonnes per day will come solely from the open pit. Current open pit reserves are sufficient for at least 10 years of production.

The deposit is unique in that, unlike a classic VMS deposit, the copper-zinc-silver-gold mineralization occurs in sets of epigenetic veins in Archean-aged rhyodacite breccias and felsic tuffs.

Cominco (TSE) has two advanced VMS projects in northern Quebec. The company is focusing most of its attention on a project just south of Val d’Or in the Grenville subprovince.

Soquem is also actively exploring for base metal deposits in the Grenville. In 1991, drilling on the Dussault property 100 km northwest of Quebec City, encountered values up to 6.2% zinc, 0.22% copper and 0.8 grams gold over five metres. Soquem is involved in several other base metal projects around the province.