Balcor confirms reserves on Lynn Lake project

A previously known gold deposit near Lynn Lake, Man., has been confirmed and enhanced by Vancouver-based Balcor Resources in a major exploration program. The company started drilling the deposit in February and Sherritt Gordon’s original reserve estimate of 107,000 tons grading 0.35 oz gold (prepared four decades ago) has been verified, says Balcor.

At the moment one drill is operating on the Lasthope property and a second is being brought to the project. The company’s land position covers approximately 2,560 acres in the Lynn Lake greenstone belt where several gold occurrences exist, including the Agassiz deposit 12 miles to the north.

In terms of immediate tonnage potential, the deposit compares favorably with the Tartan Lake discovery at Flin Flon (N.M., June 8/87), The Northern Miner gathers. The Lasthope deposit occurs in a vertical, tabular quartz vein with minimal swelling and an average thickness of 5 ft, notes George M. Leary of gml Minerals Consulting in Calgary.

His company, Jalna Resources, vended the property to Balcor when Jalna was unable to meet its financial commitments for the project. Balcor now has a 100% interest in the property subject to a 17.5% net profits royalty. Mr Lear y says the objective of the current program is to block out 500,000 tons of reserves in the Madole vein to the 700-ft horizon. The company is now drilling to a depth of 500 ft and a few deeper holes are planned to 1,500 ft which, if successful, could have a major impact on reserves, he contends.

The vein structure trends northwest and hosts two fairly long, southeast-plunging ore shoots which have been confirmed by drilling. At the 300-ft elevation, the shoots are each about 500 ft long and range in width from 2.5 ft to 10 ft. An Induced Polarization survey has indicated additional potential to the northwest which will be evaluated this season and deep ip work suggests the zone “may be strengthening,” he points out.

The Madole vein appears to be localized on a major fault structure which contains 5%-20% sulphides and locally up to 30%. Wide gold intercepts occur where footwall altered, pyritized and veined zones are best developed, he states.

The gold is apparently associated with three principal minerals: pyrite, chalcopyrite, and sphalerite. But there is no definite association with either, he says. The gold is fine grained and could be free although metallurgical test work will be required to determine this. No metallurgical test work has been done so far.

A strong shear zone runs the full length of Balcor’s claim block which Sherritt has also traced on its claims to the northwest. A winter road exists into the property and Manitoba Hydro has a power line about eight miles away.