EXPLORATION ’95 — Red Mountain downgraded to exploration

The Red Mountain gold project near Stewart, B.C., is not yet a potential mine, according to Robert Smith, president of Barrick Gold (TSE).

The company acquired the project through its 1994 takeover of Lac Minerals but decided to put it on the block, along with three other Lac assets it had decided not to keep.

But after reviewing the bids, which were not as high as hoped, Barrick decided it could create greater shareholder value by integrating the assets into its operations rather than by selling them into a weak market. Lac had previously spent more than $15 million at Red Mountain, completing surface diamond drilling, as well as underground drilling and development. “We view Red Mountain as an exploration project,” Smith says. “It deserves — and will get — more exploration.”

Meanwhile, several juniors plan to continue work on other prospects near Red Mountain this year.

Encouraged by last year’s successful drill program, Camnor Resources (VSE) and Gold Giant Minerals (VSE) announced plans for a combined surface and underground exploration program on the Willoughby property. Work is expected to begin in early May.

The companies say this major program will evaluate the economic potential of 12 separate gold zones mapped and sampled last fall. “The exceptional gold grades and the strong widths offer excellent potential for a substantial minable resource,” says Gold Giant director Nelson Baker.

The drill results on the North zone include a 38.4-ft. section averaging 1.17 oz. gold and 3.03 oz. silver per ton, and a 67.2-ft. section averaging 0.73 oz. gold and 5.37 oz. silver.

This zone is open along strike and downdip.

Camnor, the operator of the project, can earn a half interest from Gold Giant by spending $600,000 on exploration over three years and by paying $225,000 over the same period.

The Willoughby property adjoins Barrick’s Red Mountain deposit east of Stewart. Infrastructure is excellent, with power and all-weather roads available nearby.