Asamera gears up to increase work on Meliadine find

With assay results now in from a 14-hole drill program, Asamera Minerals (TSE) is busy planning an expanded 1991 exploration program for its new gold discovery near Rankin Inlet in the Northwest Territories. In view of impressive results such as 42 ft. of 0.34 oz. gold per ton, 26 ft. of 0.32 oz. and 12 ft. of 1.06 oz., the company’s decision to step up the pace next season is an obvious one. But it also appears likely that the geologic setting of the discovery — banded iron formation — contributed to the decision.

Glen Dickson, Asamera’s chief geologist for Canada, said the discovery shows “similarities” to the George Lake gold project operated by a unit of Homestake Mining (NYSE).

Last year Homestake confirmed that it had made “significant iron formation-type gold discoveries” on the George Lake property, 100 km east of Echo Bay’s Lupin gold mine (T.N.M., Nov. 27/89).

Two of the best known gold deposits hosted in banded iron formation are Homestake’s mine near Lead, S.D., which has produced well over 37 million oz. gold since 1876, and the Lupin mine north of Yellowknife, N.W.T., which turned out 100,120 oz. gold at a cash production cost of US$230 during the first six months of this year.

Asamera officials view the Meliadine River property as an “exploration prospect,” and stress that it is premature to speculate on the project’s commercial possibilities. The company owns 50% of the 720,000-acre property which was acquired by staking and permitting early this year as part of a joint venture with Comaplex Minerals, a unit of Comaplex Resources International (TSE).

The initial discovery was made during a grassroots prospecting program in the fall of 1989. In July of this year, after completing a preliminary exploration program, Asamera reported that “visible gold was encountered in the majority of surface channel samples completed to date.”

Impressive assay results from the surface channel sampling program were released shortly after; including 0.60 oz. gold along a channel length of 27 ft. and 0.66 oz. over a 20-ft. channel length. The mineralization was traced in an easterly direction for 750 ft., and remained open at both ends.

After completing 3,600 ft. of drilling along the discovery zone in the September drill program, Asamera reported that mineralization was encountered in 11 of the 14 holes. The zone is still open at depth, and to both the east and west. Assay results from the drilling are listed below, although true widths are not estimated.

At this stage, no metallurgical work has been done so it is not known if the mineralization will be refractory. Dickson said much of the gold is free and carried in zones of intense alteration within the oxide facies iron formation. He also noted that the gold is associated with, but not encapsulated in the main sulphide minerals of pyrrhotite, arsenopyrite and trace pyrite.

The Meliadine property is only 12 miles from port facilities at Rankin Inlet in Hudson Bay. The terrain is typical of that encountered in much of the Barren Lands, with low, flat and undulating hills. The discovery zone outcrops on surface at an elevation of about 50 metres above sea level.

Dickson also confirmed that other gold discoveries have been made in close proximity to the main discovery area, and in a similar geologic setting.

Along with definition drilling of the discovery area, the $1.5-million 1991 work program will include more regional exploration. The program will also include more ground and airborne geophysical surveys, as these are viewed as important exploration tools.

Assay results from the September drill program are as follows, with holes 7, 12 and 14 reporting values in two zones.

Intercept Length oz. gold Hole (ft.) (ft.) per ton 1 76-90 14 0.22 2 173-199 26 0.32 3 110-139 29 0.18 4 220-229 9 0.41 5 no significant values 6 no significant values 7 83-101 18 0.33 118-126 8 0.20 8 132-145 13 0.50 9 135-157 22 0.29 10 no significant values 11 126-168 42 0.34 12 178-183 5 0.52 237-244 7 0.42 13 387-399 12 1.06 14 290-297 7 0.54 391-412 21 0.26