Exploration ’88 HUGHES-LANG

The Hughes-Lang Group has grown to such an extent over recent years that it now comprises some 20 dif- ferent companies. The company has major programs in western and eastern Canada, the Yukon, Mexico and the U.S. As well, the Hughes-Lang Group developed and put into production one mine in eastern Canada last year (the Beacon ii mine) with a production decision for a second (the Sleeping Giant mine) now under way.

During 1987, Arbor Resources spent $900,000 on its Lonestar property, about 15 km to the south of Dawson City, Y.T. A $400,000 reconnaissance program entailing geochemical surveys, geophysical surveys and trenching was carried out. About $500,000 was allocated to rotary and diamond drilling. Two main zones of interest appear to have potential for hosting very large tonnages of low- grade material (0.03 oz gold per ton or greater), surrounding higher-grade cores (0.2 to 0.4 oz gold per ton).

These zones are believed to be the source of the Klondike placer gold that yielded more than 6.5 million oz of gold.

The company has earned a 60% interest in the Dawson property by expending $1.2 millon on the property since 1986. The property is operated on a joint-venture basis with Dawson Eldorado Mines of Calgary, Alta.

Cream Silver Mines has been active in three areas of British Columbia — northern and central British Columbia and on Vancouver Island. A $500,000 follow-up program was carried out on Cream Silver’s Lakeview property, in the historic Atlin gold camp in northern British Columbia. The exploration program entailed diamond drilling of polymetallic soil anomalies and corresponding geophysical anomalies.

Geophysical and diamond drilling results have confirmed a mineralized structure which appears to be on trend to Homestake’s Yellow Jacket zone. Homestake’s zone has a strike length greater than 740 ft with ore-grade intercepts to 300 ft in depth. This zone is believed to trend on to Cream Silver’s Lakeview property.

At Cream Silver’s Connor Creek property, near Castlegar, B.C., a $70,000 exploration program was completed. Geochemical sampling and geophysical surveys have defined several parallel zones of massive sulphide, vein-type mineralization.

On March 14, 1987, a British Columbia government order-in-council officially declared Cream Silver’s mineral claims in the Strathcona Park area of Vancouver Island to be within the Strathcona Recreation Area. Thus, Cream Silver’s block of claims now lies within an area that can be explored.

The company’s claims are contiguous to those of Westmin Resources, whose property includes four known massive sulphide deposits. Westmin’s most recently developed orebody, the hw, is about two miles to the north of Cream Silver’s claims. Previous work has shown that the same volcanic stratigraphy as that hosting the Westmin deposits exists on the Cream Silver property.

One drill is being moved onto Cream Silver’s property. A 6,000-ft drill program has been proposed.

During 1987, Gallant Gold Mines was active with explortion programs totalling $100,000 on mineral properties in the Barkerville, Kamloops and Atlin areas of British Columbia.

An induced polarization survey was completed on the company’s Utopia property, near Atlin, and has outlined a significant east-west trending anomalous zone. The Utopia property adjoins Homestake Mineral Development’s Yellow Jacket property. A similar stockwork to the one encountered on the Yellow Jacket property trends on to the company’s Utopia property.

Detailed geophysical work entailing magnetometer and vlf-em surveys has been completed over the company’s Barkerville and Kamloops properties. Anomalies defined by these surveys have recently been followed up with soil- and rock-sampling.

A total of $500,000 was spent on Gabriel Resources’ Ahbau Creek property, in the historic Cariboo gold camp. About 20,000 ft of percussion drilling was completed during the 1987 exploration program. The program tested a number of geological, geochemical and geophysical targets within a 2-sq-km area. During the course of drilling, 126 five-ft sections carrying significant gold, silver and/or base metal values were encountered.

Drill results show the highest gold concentration to occur in veins located along a major northwest-trending shear zone. The drill results also show four additional structures which host gold-bearing massive sulphide veins in the vicinity of the main shear zone. To date, significant gold mineralization has been found over a horizontal distance of 3,200 ft along the major shear zone. This structure has an indicated length of 6,000 ft and is open to the northwest.

Gabriel also completed a $50,000 airborne geophysical survey over its Yardley Lake property. As well, $75,000 was spent on a joint drilling program with Noranda on its Hixon gold property.

Kangeld Resources continues to hold an extensive block of claims in the Bissett area of Manitoba. About $35,000 was spent on a detailed mapping and geophysical program.

On the company’s properties in the Quesnel Trough, $60,000 was spent on an airborne geophysical survey. A $20,000 follow-up program entailing geochemical sampling and ground geophysics was carried out.

A $35,000 program entailing an airborne geophysical survey, geological mapping and geochemical sampling was completed on Meridor Resources’ Iskut property, in the Iskut River area of northern British Columbia.

An extensive gold soil anomaly was outlined. This anomaly is on strike with similar mineralization drilled by Delaware Resources and Skyline Explorations in 1987.

A $50,000 exploration program entailing an airborne geophysical survey, geochemical and ground geophysical surveys was completed over Silver Sceptre Mines’ Mary claims, in the Quesnel Trough area of central British Columbia. The primary target is structurally contolled gold-bearing quartz veins.

On Sept 11, 1987, D’Or Val Mines offically opened its Beacon ii mine, near the famous gold-mining town of Val D’Or in northwestern Quebec. The mill is operating at a rate of 400 tons per day. To date, about $35 million has been expended to put the mine into production.

Known as the Sleeping Giant, the Perron Gold mine is north of the town of Amos in northwestern Quebec. Current reserve calculations in all categories are conservatively estimated at some two million tons grading 0.276 oz gold per ton at 15% dilution. These reserve estimates have been calculated to the 800-ft level. Based on exploration results to date, there is considerable optimism that the results will warrant placing the Sleeping Giant into production in 1988. To date, $15 million has been spent on underground exploration leading to a feasibility study.