Exploration in Nova Scotia turns to base metals

With new exploration models and technology, the major mining companies are positioning themselves to take an integrated approach to base metals exploration in Nova Scotia.

Recent staking indicates renewed interest in the mine-making potential of carbonate-hosted lead-zinc-silver deposits in the province. The last such wave of activity, in the 1970s, culminated in the development of two base metals mines, which closed in the 1980s.

Last month, Rio Algom (TSE) staked about 450 claims in the Antigonish Basin on mainland Nova Scotia and another 250 in the Loch Lomond Basin, southwest of the Yava deposit on Cape Breton Island. “Our exploration approach is still in the conceptual stage,” says Rio Algom’s district geologist, Mike Thicke, “but we’ll likely proceed based on a thorough compilation of all past work and a close look at the stratigraphic studies done by the provincial mines department.”

In March, Phelps Dodge Corp. of Canada, a subsidiary of Phelps Dodge (NYSE), a U.S.-based major, reached a deal with junior Scotia Prime Minerals (ASE) to explore six base metals prospects in the province. Drilling is scheduled to get under way on one of those properties by the end of this month, according to Paul Chamois, district geologist of Eastern Canada for Phelps Dodge.

Last week, exploration geologists from three of the country’s largest mining companies attended the annual general meeting of The Mining Society of Nova Scotia in Ingonish, N.S. They were Rio Algom, Falconbridge and BP Canada (TSE). At the meeting, carboniferous basins were discussed in detail.

These basins, the major generators of revenue for the province’s $441-million mining industry (mainly coal, gypsum and salt) are prospective terrain for base metals as well. About 190 people attended the meeting.

James Patterson, a Halifax-based consulting geologist, points out that the basins have broad similarities to formations in Ireland where at least two significant lead-zinc discoveries (the Galmoy and Lisheen deposits) have been made recently.

International Corona owns a 20% interest in Conroy Petroleum, operator of the Galmoy project where reserves stand at 6.2 million tons at 12.4% combined lead-zinc. Geological models used in Ireland could also be used for exploration in Nova Scotia.

Unlike the less-developed parts of Canada, about 90% of an exploration budget in Nova Scotia goes directly into drilling rather than logistics, Patterson says. And a deposit containing about five million tonnes, grading 10% combined lead- zinc, could make a mine because of the area’s highly developed infrastructure, according to Patterson.

Other majors active in the province include BP Canada which has staked about 600 claims covering prospective carbonate rocks in Cape Breton. Although no firm plans have been established to work these claims, says Colin McKenzie, exploration manager for Eastern Canada, the company is seeking a joint venture partner to help finance drilling.

Falconbridge is currently evaluating results from recent drilling on the Jubilee lead-zinc deposit in Cape Breton. Over the past two years, the company has drilled about 5,500 metres looking for new zones and extensions of known zones of mineralization.

“The area has potential, but it will take better intersections than have been obtained to date to justify underground work,” says area manager Tony Green.

Falconbridge also plans to drill volcanogenic massive sulphide targets this summer on ground in the Stirling area of Cape Breton (a former copper-producing area) where the company holds about 500 claims next to ground held by Deak Resources (TSE).

Last November, Inco (TSE) and Cominco (TSE) picked up ground in the Scotsburn area of Pictou Cty., south of Pugwash. And Saskatchewan-based Cameco (TSE) recently re-staked areas of the province previously affected by a closure on uranium exploration.