Avalon steps up exploration efforts

With ground next to one company’s past failure and another’s recent bonanza, newly revived junior Avalon Ventures (TSE) is preparing for a busy exploration season in 1995.

Avalon recently entered into two separate agreements with four Ontario prospectors to acquire six claim blocks collectively known as the Percy Lake property, about 100 km northeast of Sault Ste. Marie. The property covers the interpreted source area of a strong zinc-copper-cadmium lake sediment geochemical anomaly that coincides with at least five airborne electromagnetic conductors situated within a rock sequence favorable for the occurrence of volcanogenic massive sulphide deposits. Avalon is carrying out a mapping and prospecting program at Percy Lake.

Avalon’s most advanced property is the Tarp Lake gold project near Pickle Lake, Ont., where one gold target, near a known gold zone showing up to 0.21 oz. gold per ton over 15 ft., has been defined by an induced-polarization survey. Geophysical work completed in May has defined additional gold targets along strike, and a drilling program is planned for July.

Avalon can earn a 49% interest in Tarp Lake from its operator, Inmet Mining (TSE) (formerly Metall Mining). Avalon sees potential for a large-tonnage disseminated gold deposit at Tarp Lake. Says President Donald Bubar: “I’ve got high hopes for that one.”

Despite the less-advanced state of the properties involved, Avalon’s position in Quebec’s Urban-Barry Townships, and Voisey Bay, Labrador, is noteworthy.

While Murgor Resources (VSE) was hit hard last year by disappointing gold grades at its Barry Township property, Bubar refuses to give up on the area.

“I still think it’s promising. There are too many showings, in my view, for there not to be an economic deposit there somewhere.”

That view is evident in Avalon’s decision to acquire the Urban-Barry gold project — 237 claims near the original Murgor gold showing — from Inmet. Inmet retains the right to back in for 50% of any discovery. One gold showing on the Urban-Barry property produced a chip sample assay of 0.385 oz. gold per ton across 3.9 ft. Avalon expects the summer’s prospecting work to lead to a $250,000 fall-winter program funded by a flow-through offering in Quebec.

As for Voisey Bay, Bubar figures Avalon’s 50% earn-in option on Starcore Resources’ (VSE) 100 claims, 60 km north of the Voisey Bay

nickel-copper-cobalt discovery, is a good bet. The property covers part of a strong nickel-copper-cobalt lake sediment geochemical anomaly within the Nain plutonic suite, which also hosts the Diamond Fields Resources (TSE) nickel-copper-cobalt find.

“It’s an area that looks as if it has good potential,” Bubar says.

Other Avalon projects in their early stages include the Bews Lake gold and base metal project near Hemlo, Ont., where the company can buy a 100% interest with cash and shares, and the Hawk Inlet

copper-zinc-lead-silver-gold project on Admiralty Island, Alaska. The company can earn a 100% interest there by issuing 200,000 shares over three years.