Noranda tests Perseverance

If the high-grade results of recent drilling are any indication, Noranda (NOR-T) may soon prove that Perseverance pays at its mining complex in the Matagami camp of northern Quebec.

Perserverance is the name of a newly discovered massive sulphide zone about 6 km northwest of the company’s Matagami concentrator and within the camp’s South Flank stratigraphy.

Denis Couture, vice-president of public affairs, says the Perserverance discovery reflects Noranda’s strategy of focusing exploration efforts on ground near existing mines. “We want to make sure we optimize our production facilities.”

Noranda has been active at Matagami since 1957, when the first discovery hole was spotted. While the larger deposits are now depleted, a series of smaller deposits kept the concentrator going until late 1997. The camp was revived early this year when Noranda turned the key on its new $119-million Bell Allard zinc-copper mine. This 2,000-tonne-per-day operation has proven and probable reserves of 3.3 million tonnes grading 12.9% zinc, sufficient for about five years.

As its name suggests, Perseverance was not discovered overnight. “We drilled the ground in 1981,” says David Gower, director of Canadian exploration. He explains that recent exploration has benefited from geophysical advances allowing deeper penetration than in the past. This work revealed a conductor that had not been detected before, leading to a decision to go back and evaluate the area.

The first hole was aimed at a magnetic anomaly coincident with a pulse-electromagnetic (EM) conductor. It cut altered volcanic rock but failed to intersect any mineralization. However, a borehole EM survey did indicate an off-hole anomaly to the west. “This technology wasn’t around before either,” Gower adds, “at least not at the sophisticated level it is now.”

The discovery hole, collared 100 metres west so as to evaluate the anomaly, returned an impressive 66.7 metres (starting at 168.35 metres) grading 15.47% zinc and 1.56% copper, plus 47 grams silver and 0.5 gram gold per tonne. However a subsequent scissors hole, drilled on the same section as the discovery hole so as to confirm dip direction, suggests discovery hole 2 was drilled downdip. Hole 3 returned a respectable 28.55 metres (starting at 164.45 metres) grading 23.7% zinc, 1.12% copper, 34.49 grams silver and 0.27 gram gold.

Encouraged by results from holes 2 and 3, Noranda brought in a second drill to test the favourable horizon some 50 metres west of the discovery hole. It hit 21.22 metres (staring at 190.63 metres) grading 13.33% zinc, 1.69% copper, 30.25 grams silver and 0.38 gram gold. It was drilled on the same azimuth (220) as the discovery hole and is also a downdip intersection.

Hole 5 returned high-grade mineralization in two zones separated by a mafic dyke and a magnetite zone. It intersected 10.7 metres of 25.45% zinc, 1.91% copper, 24.26 grams silver and 0.5 gram gold in the upper zone, and 5.45 metres of 21.61% zinc, 0.97% copper. 33.33 grams silver and 0.28 gram gold in the lower zone. This hole was targeted 50 metres below hole 3 on the same section. Hole 6 was targeted 50 metres above hole 3 but did not intersect any significant mineralization.

Hole 7, which was a stepout 50 metres east of hole 5, intersected a previously undetected mineralized zone near the bedrock-overbuden interface, as well as the Main zone at 154.2 metres. The upper zone (Lens 2) grades 13.05% zinc, 1.3% copper, 14.27 grams silver and 0.3 gram gold over 19.35 metres. The Main zone graded 25.77% zinc, 0.47% copper and 11.78 grams silver (gold assays pending) over 25.35 metres.

Hole 8 was collared on the same section to test the Main zone 50 metres above hole 7. The hole missed Lens 2, but cut 31.6 metres grading 15.69% zinc, 1.86% copper and 37.32 grams silver (gold assays pending) in the Main zone.

Hole 10, which appears to cut the zone off to the east, did not intersect any significant mineralization, and holes 9 and 11 are in progress.

Although results to date are encouraging, Gower says it is premature to speculate on the size of the zone. “We’ll just continue to drill, and keep drilling as results dictate.”

Under the terms of a joint-venture agreement, Noranda holds a 90% interest in the property. Socit de Dveloppement de la Baie James (SDBJ) has the right either to participate at 10% after completion of a positive feasibility or convert its interest to a 2% net smelter return royalty.

If it participates, SDBJ will fund its share of development costs; if not, Noranda can buy back 1% of SDBJ’s royalty for $1 million.