Aber one of many companies looking for gold in the N.W.T.

The venerable DC-3 aircraft helped open up the north, but in recent years flow-through financing has played a major role in developing its mineral wealth. The pace of exploration in the Northwest Territories is at record levels and the search involves a variety of commodities including gold, platinum, uranium, beryllium and rare earths.

Because of access problems, most companies are exploring for gold. Shipping concentrate out of the north can be an expensive proposition which has tended to stymie exploration for base metals. Refined products like gold or dore bullion are a different story, however. But servicing these isolated mining camps is costly and the economics of developing properties north of the 60th Parallel is closely allied to grade.

The territorial government recently sponsored a fact-finding mission to the north which was well attended by journalists, mining analysts and other interested participants. Several producing mines and a number of advanced-stage properties were visited, and one day was set aside in Yellowknife for company presentations.

Aber Resources has been reporting some extremely encouraging results from its Au 23 and 24 property held under option by Cominco and Cogema Ltd. Located near Echo Bay’s Lupin mine, the current program is being funded by the Contwoyto Syndicate which is owned 39% by Aber. The first drill hole on the property returned 13.4 ft of 0.49 oz gold while the second yielded 12.1 ft of 1.2 oz cut. A third hole cut 9.8 ft of 0.35 oz.

The discovery occurs in a Lupin- type iron formation which was outlined by geophysics under 49 ft of overburden. The geophysical anomaly occurs over a strike length of 1,300 ft and is open at the east end of the grid where the survey was terminated. According to David Trueman, a company director, drilling is scheduled to resume by month end.

A sub-agreement between Cominco, Cogema, and the Contwoyto Syndicate will enable the drill program to resume. This agreement allows Cominco and Cogema to retain their original interest (70%) but requires the companies to pay three times the Syndicate’s 1987 expenditures towards mine development costs in addition to their own pro rata shares. Cominco will continue to manage the project.

Aber’s Bugow leases are located 65 miles northeast of Yellowknife and drilling began there in July, 1986. The first drill hole led to the discovery of the Cabin Lake zone, a shoot- like structure which plunges into a closely-spaced faulted section which is difficult to follow. Mixed results were returned from three other areas.

Earlier this year Aber and its affiliated company, Highwood Resources, concluded an agreement with Freeport-McMoRan Gold whereby Freeport would carry Aber and Highwood through expenditures of $7.7 million or completion of a production feasibility study for the Bugow leases. Freeport would thereby earn a 51% interest with Aber and Highwood holding 24.5% each. The company’s 1987 exploration budget is approximately $400,000 and the current stepout drilling program involves several new conductors.

Three targets exist on the SP zone which is six miles northeast of Bugow. Two of these are ready for drilling and they occur in a northeast-plunging fold, said Mr Trueman. Detailed prospecting and geophysics are planned for Aber’s Jax Lake deposit in the Courageous Lake area which has been a beehive of activity this season.

Noble Peak Resources expects to drill its Happy Lake project in the Rankin Inlet area this year. Anomalous gold values were returned from three areas last season, said Norm Ursel, president. The property is located in a greenstone belt and the discovery area appears to be structurally controlled by faulting and shearing. The best values ranged from 0.16 to 0.25 oz gold per ton over widths of 3.3 ft to 23 ft, he said. Reflecting at least one of the problems of doing business in the north, Mr Ursel said the company had to shut down its program because the “cariboo started calving.”

Roxwell Gold Mines, headed by drilling contractor Anthony Shearcroft, has three properties in the Courageous Lake belt. One of these, the BS-Cour, is on strike with the Noranda-Getty property (N.M., Aug 24/87). The Roxwell ground is under option to Bow Valley Industries which can earn a 100% interest by spending $8 million on exploration and a feasibility report within four years. Roxwell would retain a 50% net profits interest following Bow Valley’s earn-in period.

Mr Shearcroft said a first-phase 10,000-ft drill program is only about one-third completed because of some technical problems. He claimed there were 500,000 tons of “sub grade” ore on the property which was outlined by Cominco three years ago. Cominco is no longer involved in the project. The first-phase drill program will explore down-dip and strike extensions of the Perrson zone.

Previously an oil and gas company, Westfort Petroleums has switched its exploration emphasis to gold. The tse-listed company has the option to earn a 50% interest in the W.T. claims owned by Cameron Holdings, a private N.W.T. company. The property is located 43 miles northeast of Yellowknife on the west side of the Cameron River.

Two gold-bearing zones have been identified and values in the No 1 zone occur in a massive quartz lens 250 ft long and up to 50 ft wide. In the No 2 zone, located 300 ft east of No 1, gold mineralization has been found in two small quartz vein lenses which are associated with sulphide facies iron formation. Several drill holes indicate the zone reaches over 200 ft in depth. Reserves estimated by the company are 28,000 tons grading 0.286 oz gold in four ore shoots, three of which are in the No 1 zone.

This year’s program will include detailed surface mapping of all gold- bearing zones of interest. The No 1 zone will be remapped and sampled on the 80-ft level (which was developed by Precambrian Shield Resources) and a surface drill program will test the No 1, 2 and 13 zones. A bulk sample will be taken from the underground workings for metallurgical testing and some geophysics is also planned.

High-flying Borealis Exploration will be spending $10 million this year on its Fat Lake deposit south of Baker Lake, N.W.T. The program is being funded by nim on a flow-through basis. About 7,500 ft of drilling has been completed so far and three significant ore shoots outlined, all within 200 ft of surface. Borealis believes the shoots will yield sufficient tonnage for a bulk sample which will be run through a small concentrator now being constructed on the property.

The property has 50,000 tons of reserves grading 0.3 oz gold but only higher grade portions will be mined and processed. A decline is being sunk into the ore zone for a 3,000-ton bulk sample and Borealis predicted at least 70% of the gold will come out through gravity separation. Noble Peak has optioned some Borealis ground to the north.

Kelmet Resources has just filed a prospectus in Alberta which will allow it to carry out exploration within 100 miles of Yellowknife. The company expects to raise $850,000 in flow- through funds to evaluate three properties. Golden Marlin Mines, which is going public in Vancouver, has completed a major seismic program on claims covering the possible extension of the Campbell shear under the waters of Yellowknife Bay. This shear zone hosts the Con mine at Yellowknife. The program proved the shear zone extends underneath the bay.