Agassiz going underground at Lingman set to go underground

Geologists will soon be going underground again on the Lingman Lake gold deposit in northwestern Ontario.

It has been about 40 years since someone has been underground there. But a Ned Goodman company, Agassiz Resources, which spent about $2 million exploring the property last year, is now moving pumps and other heavy equipment east over an ice road from Red Sucker, Man. The pumps will be used to dewater a 400-ft shaft and drifts on three levels, in preparation for a $3.5-million underground exploration program which includes 30,000 ft of drilling.

The purpose of the underground program is to increase reserves of 1.4 million tons and to add confidence to the 0.26-oz-gold-per-ton drill-indicated grade. A production decision could be forthcoming by the end of 1988, The Northern Miner has learned.

All work is being financed by Massive Resources of Toronto, which can earn a 31% interest in the property by spending $10.5 million over three years. Twin Gold Mines, which holds the property, sold 62% of its shares to Agassiz in December, 1986.

So far, expenditures on the Lingman Lake property give Massive a 7% interest.

Massive has a commitment from cmp for $510,000 in flow-through funds and the company is lining up an additional $3 million, according to President John Sadowski. An equity financing, which received regulatory approval in November, 1987, has been cancelled.

Last year, 82 holes were drilled on the property, totalling 45,000 ft of core. Assay results have confirmed drill-indicated reserves and additional reserves are indicated. One of the better holes cut 11.8 ft of mineralization grading 1.618 oz gold per ton (uncut), or 0.712 oz (cut to 1 oz).

Work is being carried out by Durham Geological Services under the supervision of geologist Paul Bowen.

The gold mineralization has been traced to a strike length of 1,000 ft on the west side a wide diabase dike that bisects the property. The zone on the east side of the dike, where the shaft is located, has been traced for 2,000 ft. Gold mineralization has been outlined in five separate zones on this part of the property.

One hole, 5-16, collared about 1,400 ft east of the shaft cut 29 ft of mineralization grading 0.229 oz gold per ton. Further east, the mineralization appears to peter out. Intersections include: 5.3 ft of 0.169, 4.3 ft of 0.112 and 2.1 ft of 0.124 oz.

Extending existing underground drifts and deep drilling from the 400-ft level will aid in testing the zones at depth prior to other levels being driven below the 400-ft level.

The company has all the necessary permits to begin dewatering the mine, which should be completed in about two weeks.

By the end of this month, Massive will have about 8.8 million shares outstanding. The company’s shares traded this week in Vancouver at about 70 cents .

Twin Gold has about 2.4 million shares outstanding, trading in Alberta at about $2.25. The company is going to make an application soon for a listing in Toronto.