TVX, Golden Knight hit new zones near Casa Berardi Est

TVX Gold (TSE) and Golden Knight Resources (TSE) have discovered two gold zones about 100 metres northeast of their jointly owned Casa Berardi Est mine in northwestern Quebec.

The companies say a borehole drilled as part of an ongoing surface exploration program cut the mineralization on the north side of the east-west trending Casa Berardi fault.

Two subsequent bracketing holes, drilled 40 metres east and west of the initial hole, also encountered ore-grade intercepts, the companies say. “It’s something new, north of the fault,” Stephen Sopher, TXV executive vice-president, said. “It’s between the fault and a shear zone to the north.” The borehole data indicates the mineralization comprises two separate bodies, the first occurring at a depth of about 125 metres and the second at 230 metres. Additional mineralization was intersected between the two bodies. “It looks like it is dipping about 50 degrees to the south,” Sopher said of the mineralization.

Previously, drilling on the property stopped at the fault. Of significance, Sopher pointed out, is that the mineralization is “readily available” and the companies wouldn’t have to sink a new shaft or ramp.

The discovery hole cut 51.6 ft. of 0.14 oz. gold per ton (including 14 ft. of 0.26 oz.) and 31.1 ft. of 0.21 oz. (including 14.3 ft. of 0.27 oz.). The second hole intersected 12.3 ft. averaging 0.19 oz. The third hole cut a 58.8-ft. section grading 0.19 oz.

TVX, the operator, has a 60% interest, and Golden Knight a 40% interest, in the Casa Berardi operation, which features two producing gold mines, Est and Ouest.

Ramps allow access to each mine which provide feed to a common mill facility at the Est mine. In 1991, the two mines produced a total of 119,000 oz. from mill throughput of 592,000 oz., at an average cash cost of US$186 per oz. The Casa Berardi property, which straddles the fault and covers an extensive area, hosts reserves (as of the end of 1991) of 9.4 million tons (proven and probable) grading 0.25 oz. and 2.6 million tons (possible) grading 0.15 oz. The controlling shareholder of TVX is Inco Ltd., while Golden Knight’s major shareholder is Teck Corp.