Exploration ’88 NORTHAIR

Northair Mines has been developing the Willa property, in south eastern British Columbia, with partners bp Selco and Rio Algom. More than $10 million has been spent on exploration and development to date, and Northair has earned a 70% interest. A production decision is anticipated in early 1988, says Fred Hewett, Northair’s exploration manager. Extensive surface and underground workings have delineated reserves of 606,000 tons grading 0.22 oz gold and 0.27 oz silver per ton and 1.04% copper — all in the West zone. (A recent rich intercept to the south of the known mineralization in the West zone cut 0.336 oz gold per ton across 91.3 ft.) The company believes additional reserves will be developed in the East and Main zones as well. Northair’s 350-ton-per-day Brandywine mill has been trucked piece-by- piece to Willa. It will be re-erected and expanded to 500 tons per day. Given the excellent location, the Willa mine should have low start-up and operating costs. Northair is also involved with joint venture partners bp Selco (at Long Lake in Newfoundland) and Noranda (at the Stewart Option in Ontario). It is actively involved in exploration ventures across Canada and in the western U.S.

Newhawk Gold Mines, a company in the Northair fold, is developing the Sulphurets property near Stewart, B.C. in conjunction with joint-venture partner Granduc Mines. Newhawk, the operator and holder of 60% of the property, has completed more than 87,000 ft of surface diamond drilling, 2,000 ft of underground workings and 25,000 ft of underground diamond drilling, primarily in the Brucejack area. At the end of 1986, this extensive work had outlined reserves in the Brucejack area of 1,584,000 tons grading 0.336 oz gold and 22.86 oz silver per ton.

Work conducted in 1987 indicates reserves will be increased, and new reserve calculations are being compiled. The West zone has been tested to a depth of 1,000 ft and along 1,500 ft of strike, and it is open both at depth and along strike. Overland access is now firmly established from Highway 37, and fuel and supplies can be transported to the property at a fraction of what it cost in previous years. Production is scheduled for late 1988.

Another Northair-controlled company, Tenajon Silver Corp., has conducted exploration in Ontario on the Balmer property near Red Lake and the Burchell property near Thunder Bay. Work in British Columbia has been concentrated on the sb property near Stewart, in conjunction with Esso Minerals Canada. Successful surface drilling in 1986 and 1987 (52 ft of 0.714 oz gold per ton) resulted in a decision to proceed with underground development. A 1,500-ft adit was collared in the fall of 1987, and an extensive underground diamond drilling program is planned.

The Northair group also includes: Calnor Resources, which will continue drilling its High Lake property close to the TransCanada Highway near the Manitoba-Ontario border; Suneva Resources, which has projects near Flin Flon, Man. and in Nevada; Royal Scot Resources (formerly Scottie Gold Mines); and Suntac Mineral Corp. Suntac, the newest addition to the Northair group, will carry out a 1988 drill program on its Catface gold project, which adjoins the Falconbridge Catface deposit on Vancouver Island.

The corporate offices of the group are at Suite 860, 625 Howe St., in Vancouver. The group is headed by mine developer David McLeod. Exploration activities are under the direction of Vice-president Fred Hewett. The 1988 budget for precious metal exploration is estimated at $9 million.