With three major projects Syngold aims to be active

With nine drills operating on three separate properties and $3.9 million successfully raised through the sale of deposit receipts and common shares, Syngold Exploration is making good its claim of becoming an active mineral exploration company.

Little had been heard from the company since the early 1980s when it changed its name from Atlantic Nickel Mines on a share- for-share basis. But it seems that’s all about to change for the company was reactivated this year and listed on the Montreal Exchange, with plans of a Toronto listing some time next year.

Recently-appointed President Barry Simmons tells The Northern Miner the company is actively seeking quality acquisitions to expand its exposure to precious metals, and the stress is on quality.

“Any property we acquire must have not only proven mine potential, but it must also have the best technical merit,” says Mr Simmons, who was formerly the regional exploration manager for Corp. Falconbridge Copper at its Thunder Bay office, where he was involved in the Winston Lake discovery. Chairman of Syngold is Jim Gill who is also president of the successful Aur Resources.

One other important criteria when looking at acquisitions, says Mr Simmons, is that either operators with proven track records or Syngold itself would handle any work programs. So far, on its three current major programs, the company is adhering to its strategy quite nicely.

At its Owl Creek West property in the heart of the famed Timmins mining camp of Ontario, Kidd Creek Mines is the operator. Syngold can earn a 35% interest in this property which adjoins Kidd’s Owl Creek mine by spending $2 million before March, 1988. A budget of $1 million has been set for this year.

A zone of gold mineralization similar in character to the Owl Creek deposit crosses the Syngold property. Previous drilling on widely-spaced holes within this zone returned gold values between 0.19 and 0.25 oz gold per ton over widths ranging from 7.4 ft to 35.4 ft.

Three drills are now operating on the property with up to 45,000 ft planned by year-end. Fill-in drilling is being completed on the widely-spaced holes to test depth continuity of the zone.

Early assays from the current program include 0.19 oz gold per ton over 8.2 ft, 0.22 oz over 7.5 ft and 0.18 oz over 6.6 ft.

On the Deka property in the Noranda camp of Quebec, Syngold can earn a 35% interest from Corp. Falconbridge Copper by spending $3 million in stages before March, 1989.

“It’s a prime piece of real estate,” says Mr Simmons. The property consists of 46 mining claims and three mining claims, which are contiguous and which encompass the past producing D’Eldona, Delbridge #2 and Donalda #2 mines. Four drills are operating on the property now with up to 45,000 ft of drilling scheduled for completion by year end. Corp. Falconbridge Copper is operator.

An initial drill hole adjacent to the former Donalda mine has intersected a strongly altered shear zone assaying 0.05 oz gold per ton over 9.1 ft. At a vertical depth of about 1,400 ft this structure may represent an untested zone parallel to and below the Donalda vein systems, says Mr Simmons.

In addition, surface stripping of a showing discovered last year has exposed additional areas of visable gold on the property. Detailed sampling is in progress.

At its third major project, Syngold can earn a 49% interest in Aur’s Valdora property near Val d’Or, Que. by spending $1 million in stages to March, 1988.

Syngold is the operator here. Detailed field surveys have been completed with two diamond drills now operating. Up to 20,000 ft of drilling is scheduled for completion by December.

In the Zone 1 area intersections of 0.33 oz gold per ton over 5 ft and 0.21 oz over 5 ft were cut in two separate drill holes.

In addition, the recently completed field surveys discovered two new surface gold showings on the property, says Mr Simmons. The first showing is in the northern portion of the property and here a drill hole intersected 0.39 oz gold per ton over 5 ft at a vertical depth of 200 ft below the showing.

The second new showing found in the northeast-central portion of the property has returned assays up to 0.60 oz from a complex system of intersecting gold-bearing veins.

Syngold is also in the early stages of exploration on its gold-base metals property located in the Vio/Normetal belt near La Sarre, Que.