Magnacon yields strong results

The combination of a high percentage of visible gold and good continuity over drifted sections is yielding some pleasant surprises at the Magnacon project 50 miles west of here. Located north of Mishibishu Lake, the project is owned by partners Muscocho Explorations (25%), Flanagan McAdam Resources (50%) and Windarra Minerals (25%).

One of the most promising findings has been the wide discrepancy between drill hole grades and those determined from drift and raise sampling. During a tour of the surface and underground facilities, The Northern Miner learned that underground assays are 40% higher than those determined from drill core.

The result of such findings from the $13-million underground program is a marked increase in reserves and grade. The latest calculation of reserves in the proven and probable categories shows 443,913 tons in the main zone grading 0.4 oz gold per ton. This is based on a high cutoff grade of 0.2 oz. By lowering the cutoff grade to a more reasonable 0.1 oz, the reserves swell to 1.1 million tons grading 0.24 oz, Peter Mordaunt, chief geologist for Muscocho told The Northern Miner. A majority of these reserves lie above the 500-ft level.

“The significant thing about that 443,000 tons of 0.4 oz is that most is accessible from the current mine workings,” Muscocho President J. Terrence Flanagan explained.

Graham Mining, the contractor on the project, has completed 4,200 ft of decline ramp and four levels to a depth of 550 ft. During an inspection of the 1350 level at a depth of 250 ft, the main quartz vein was seen to be persistent over several hundred feet of drift. A visual estimate of widths ranged up to 15 ft in places, The Northern Miner can say. In sections, the vein typically pinches and swells, but rarely appeared to get below 3 ft in width.

Climbing down from the 1350 to 1250 levels via the 3008 raise, again showed the main vein to be continuous between these two levels. Visually the width was estimated at five ft. Detailed work by Muscocho shows the raised section to in fact average 6.94 ft in width. More importantly, the 158.5-ft section of raise assayed an impressive 1.76 oz. High grade raise assays

“Each round showed visible gold,” mine geologist Robert McIntosh told The Northern Miner. On the 3052 raise, also between the same levels, face samples averaged 0.661 oz over a width of 5.77 ft and a raise length of 106.5 ft. The over- all average from three raises is 1.01 oz across a width of 5.5 ft, the partners report.

Another intriguing observation underground is the common occurrence of large masses of galena, the mineral of lead. Other sulphide minerals associated with the quartz vein are arsenopyrite, pyrite and chalcopyrite. Although silver is not being factored into any economic studies at the moment, assays from select sections underground have yielded silver values up to 25 oz per ton, Mordaunt says. Over-all mine silver grades will be much lower. However, the silver is currently being seen as an added bonus in terms of potential revenue per ton.

The arsenopyrite is not expected to pose any metallurgical problems, McIntosh explained on site. Initial studies have revealed that gold grains are found on the edges of sulphide grains and within micro fractures. Conventional grinding and milling techniques are expected to liberate up to 95% of the contained gold. A major bulk test of up to 20,000 tons of surface stockpiled ore is also planned. This will most likely take place at the 400-ton-per- day Magino test mill, being erected 65 miles east of the Magnacon project. (Muscocho is developing the Magino project with McNellen Resources.) Good exploration potential

The Magnacon zone is associated with a major regional shear structure striking for more than 10 miles. Immediately to the west of the Muscocho property boundary, partners Granges Exploration and MacMillan Energy are starting an underground exploration program on a gold mineralized section of the same structure.

Considerable exploration potential remains on the Magnacon property, especially at depth towards the west. Little drilling has been carried out below the western extension zone which is partially defined to 550 ft. In longitudinal section, this area, 1,800 ft west of the main zone, stands out as a major exploration target. The ramp has been extended into the western extension zone from where drifting and drilling is in progress. In the main zone, which displays a distinct plunge, the deepest drill hole cut 10.6 ft grading 0.37 oz to a depth of 1,200 ft.

The combination of high grades, good continuity at shallow depths and strong confidence limits on known reserves suggests a production decision will be made following completion of the current program in February, 1988. “It’s hard to see that it won’t be a positive one,” Flanagan told The Northern Miner at his Toronto office. Pending the completion of a positive feasibility study, the partners plan to build a mill on site. Mill tune-up could begin by the fourth quarter of 1988.