MINING IN CANADA — Hemisphere tests for Territorial treasures

Equal partners Hemisphere Development (HSD-V) and Aber Resources (ABZ-T) report that a new phase of drilling has begun on the Sunrise Lake volcanogenic massive sulphide deposit 70 miles northeast of Yellowknife, N.W.T.

Previous drilling outlined a reserve, in the upper zone, of 2.1 million tons grading 11.8 oz. silver and 0.03 oz. gold per ton, as well as 0.1% copper, 4.2% lead and 8.9% zinc.

Drill crews are currently exploring a lower sulphide horizon, previously intersected by hole R-30-88, which assayed 1.53 oz. silver and 6.2% combined lead and zinc over 20.7 ft., and hole R-61-88, which returned 0.04 oz. gold, 1 oz. silver and 9.6% combined lead-zinc over 19.7 ft.

Results have been received from the first three holes of the current program: * Hole 1 flattened and did not cut significant mineralization; * Hole 2 returned 4.07 oz. silver, 0.25% copper, 1.64% lead and 4.08% zinc over 8 metres (from 212.4 to 220.4 metres); whereas

* Hole 3 returned 9.59 oz. silver, 0.26% copper, 1.64% lead and 4.08% zinc over 7.54 metres (from 246.8 to 254.4 metres), including 0.45 oz. silver, 0.69% copper, 1.26% lead and 3.2% zinc across 1 metre (from 263.5 to 264.5 metres) and 0.7 oz. silver, 0.5% copper, 1.89% lead and 6.24% zinc across 0.96 metre (from 269.5 to 270.5 metres).

Gold assays have yet to be received.

Downhole geophysical surveys have been completed on various drill holes in an attempt to measure the extent of the lower sulphide horizon. The partners report that holes 4, 5, 6 and 7 have all intersected mineralization in the lower sulphide horizon. Assays for these drill holes will be released as they become available.

Meanwhile, Hemisphere has begun drilling at its Hottah Lake property, which is also situated in the Northwest Territories. The program is testing for nickel-copper-cobalt sulphides or possible Olympic Dam-style mineralization.

The Hottah Lake anomaly, which was discovered in 1996 by an airborne magnetic survey, is said to exhibit the largest and most intense magnetic signature known in the Territories. The structure measures 20 km long and up to 8 km wide.

Last year, a 129-line-km grid was established over the anomaly and, subsequently, ground magnetic and time-domain electromagnetic surveys were carried out. Results confirmed the continuity and extent of the magnetic feature and identified three large and strong conductive trends that Hemisphere believes were likely caused by Proterozoic basement conductors.

The conductors, which range up to 4,000 metres in length, are directly correlative to the flanks or shoulders of the total field magnetic anomaly.

Modelling of the results for the northern 6,000 metres of the anomaly indicates a body up to 1,800 metres wide with a depth of 180 to 370 metres.

Hemisphere believes the anomaly may represent a large mafic-ultramafic intrusive target that could host nickel-copper-cobalt sulphides similar to those found at Voisey’s Bay in Newfoundland and at Noril’sk in Russia. The company adds, however, that the anomaly could also be indicative of a large tabular Olympic Dam-type target.

The drilling, results from which are pending, is being funded by means of flow-through financings.