Aber drilling copper-zinc prospect

Drilling is under way on the High Lake base metal project in the Northwest Territories following an option agreement between Kennnecott Canada and Aber Resources (TSE).

At a recent annual meeting, Aber President Grenville Thomas said he hoped the 16,000-ft. drilling program will upgrade reserves on the property to at least eight million tons grading 8% combined copper-zinc. Aber is expected to spend $1 million on the property this year as part of an agreement to earn a 50-60% interest from owners Kennecott and The Hudson’s Bay Co. Discovered in 1955 about 25 miles south of the Arctic coast, High Lake contains a preliminary reserve of five million tons grading 3.5% copper, 2.5% zinc and 0.023 oz. gold per ton. The A zone, a stringer zone carrying copper-gold mineralization, hosts the bulk of the tonnage. The overlying D zone, a zinc-rich massive sulphide lens, remains virtually unexplored. Although Thomas said High Lake’s proximity to the coast would make development feasible even with the presently limited infrastructure in Canada’s north, he is hopeful that a proposed shipping operation from the Coronation Gulf will open up the rest of the Northwest Territories for mining. “I believe this area is about to be developed after a long time of waiting,” he told shareholders.

Canarctic Shipping of Ottawa, a consortium of business and government interests, is in the midst of a study to determine the feasibility of shipping concentrates from the Coronation Gulf. Results are expected by year-end.

Aber can earn a 30% or 40% interest in the deposit by spending $8 million or $10 million over the next five years. The Vancouver-based junior has the right to acquire another 20% from The Hudson’s Bay Co. through cash and share payments.

Dazzled by diamonds and the market activity that has revolved around them recently, shareholders were also keen to hear about exploration plans for Aber’s 1.2 million acres of claims adjoining the BHP-Dia Met discovery pipe near Lac de Gras, N.W.T.

Thomas told them an Aber crew had just arrived in the area to evaluate targets identified by airborne magnetics. Kennecott, which will spend $2 million this year, has the option to earn a 60% interest in the “Diavik project” by spending $10 million on exploration. Drilling could begin as early as August, Thomas said.