Alberta Gold’s Iris claims could be mined via open pit (August 29, 1988)

Edmonton-based Alberta Gold Exploration (ASE) has signed agreements worth nearly $3 million to finance exploration at the Iris joint venture in northeastern Ontario’s Harker-Holloway area, the company said recently.

An initial $1.9 million is being raised through flow-through arrangements, while Alberta Gold has signed a letter of intent for an extra $1 million.

Alberta Gold (55%) and partner Perrex Resources (ASE) (45%) are conducting a drill test on a 7-million-ton block of mineralization on the B zone, which hosts both gold and tungsten. The 7-million-ton block may eventually form the basis of an open pit, said project geologist Don Hawke. It is one of four zones currently being tested by the joint venture.

Previous drilling on the B zone intersected 13.5 ft of 0.2 oz gold per ton while a 16.7 ft intersection grading 0.11 was spotted 200 ft further east.

According to Don Hawke, the bulk of the Iris reserves are contained in the P zone which may prove to be open pittable. It hosts drill indicated reserves of 348,393 tons of grade 0.09.

“Compilation of drill indicated ore reserves is being made as assays are received and based on results so far, it is expected that an open pit mining operation will be feasible,” the company said.

We are just starting to get our tungsten assays back and they will have to be factored back into the P zone, Hawke said. Using the tungsten element in their calculations, he claims that 600,000 tons of grade 0.2 oz of gold equivalent would be sufficient to warrant a production decision.

“Final figures should be available by the end of the month,” he said.

In other news, Alberta Gold has signed an option agreement to earn 25% of 102 Holloway and Marriott Twp. claims located four miles east of American Barrick Resources’ (TSE) Holt-McDermott mine. Several drill targets have been outlined on the claim group.