Asamera bullish on Meliadine

An additional $1.5 million will be spent on the Meliadine River gold project in the Northwest Territories this year after Asamera Minerals (TSE) received encouraging results from its 1991 program.

“I would be surprised if we did not find one or more economic deposits,” says Ed Morrow, vice-president of exploration, referring to the gold occurrences that stretch for 45 miles within the project area. Asamera, a subsidiary of Asamera Inc., which is in turn owned by Gulf Canada Resources, is increasing its interest in the Discovery area, a 26,400-acre portion of the property, from 50% to 75%. Comaplex Minerals, a unit of Comaplex Resources International (TSE), will retain a 25% stake. About $3-3.5 million has been spent on the Meliadine River project since 1989. Altogether 54 holes have been drilled, 30 of which have returned high-grade gold values. Asamera’s share of this year’s funding will total about $1 million.

Part of the 1992 program will focus on establishing the continuity of the Discovery zone, which carries an average grade of 0.35 oz. gold per ton and has been intersected over a strike length of 575 ft. Having penetrated the zone at a vertical depth of 985 ft., Asamera also plans to probe deeper with two 2,000-ft. holes. Drilling will begin in June or July.

Although Morrow refused to speculate on the zone’s potential reserves, he said that Asamera has been impressed by its continuity. If mineralization is reasonably consistent, a back-of-the-envelope calculation by The Northern Miner indicates that the joint venture has outlined in the order of 2.5 million tons to date.

A second rig will be stationed on a strike extension of the mineralized structure, about 15 miles to the west, where Rio Algom (TSE) is earning a 60% interest from Comaplex and Asamera by spending $5 million over six years. Before breakup this spring, about $500,000 will be spent on Rio’s project, where Asamera completed six shallow holes at the end of last season. “The situation is a district-sized play at this point and we have strong indications, particularly from the Westmeg area, that a second target type south of and parallel to the original iron formation target, may host economically interesting grades,” says Morrow.

Although Meliadine River falls within the huge land claim area expected to be handed over to the Tungavik Federation of Nunavut later this year, Morrow says Asamera is “completely comfortable” with its property position there. A tentative agreement between the federal government and the Inuit protects the rights of companies and individuals with existing mineral claims and leases.