Celtic, Orogrande holes cut sulphides

Drilling at two separate projects in central Newfoundland has turned up promising massive sulphide mineralization.

At the Great Burnt Lake property, Celtic Minerals (CME-V) has extended a known copper deposit downdip. The seventh hole of an 8-hole program returned 2.71 metres (starting at a down-hole depth of 245 metres) grading 1.33% copper and 2.11% zinc.

In the 1970s, Asarco determined that the Great Burnt Lake deposit hosts 1 million tons grading 2.92% copper. Historic results from the overturned deposit show a copper-rich stringer zone near the surface and more massive mineralization at depth, with zinc mineralization (generally less than 1%) concentrated in the down-plunge portion.

Mineralization appears in the form of pyrrhotite, chalcopryite and pyrite, and is conformable with the host stratigraphy — mafic flows and tuffs with interbedded sedimentary rocks. The deposit is tabular; thickens to 14 metres; dips steeply to the southeast; and plunges gently to the southwest.

Celtic notes that the recent interval contains the highest zinc values ever obtained on the property and is twice as thick as an interval situated updip, within the known envelope of mineralization. Accordingly, it opens up a considerable volume of stratigraphy for further testing.

Of the remaining holes in the program, hole 4 was the most prospective. Collared 300 metres along strike of hole 7, in the known deposit, the hole cut 0.085% cobalt over 0.88 metre of a 14.89-metre interval that averaged 1.89% copper. As cobalt was never analyzed for in the past, representative historic core will be re-assayed for the metal.

Holes 2 and 5, drilled along strike and underneath, respectively, hole 4, returned low copper values over narrow widths. Hole 4 revealed an altered breccia zone with minor pyrrhotite and chalcopyrite grading up to 0.89% copper and 2.75 grams gold per tonne over half a metre, whereas hole 5 turned up stringer pyrrhotite-pyrite about 100 metres down-hole. A borehole geophysical anomaly was detected in the latter hole.

Future drilling will focus on deeper stratigraphy, below the known envelope of mineralization.

After the spring thaw, Celtic plans to begin a 2,000-metre program at the nearby South Pond property. Drilling will focus on four coincident geochemical and geophysical anomalies, and attempt to expand the South Pond copper deposit and separate South Pond gold prospect.

In the 1950s, the South Pond copper deposit was estimated to host 323,000 tons averaging 1.3% copper. Celtic has since determined that the deposit was drilled from the footwall and contains, in places, up to 5 grams gold per tonne.

The South Pond deposit is in a geologic setting similar to that of the Great Burnt Lake deposit and is slightly overturned, facing northwest. Mineralization thickens to 15 metres and is characterized by anastomosing layers of pyrrhotite with disseminated-to-semi-massive chalcophyrite.

The gold prospect, about 1 km along strike to the south, is characterized by two discrete areas of shear-hosted disseminated mineralization. Two short holes drilled in 1987 yielded 5.5 metres grading 2.21 grams and 4.33 metres of 4.8 grams.

Burnt Pond

Meanwhile, the final of three holes drilled at the separate Burnt Pond property returned 11.1 metres (starting at 484 metres down-hole) of 1.71% zinc, 1.1% lead, 0.15% copper and 44.8 grams silver. The interval included 0.3 metre running 25.8% zinc, 24% lead, 0.79% copper, 791.1 grams silver and 1.6 grams gold.

Orogrande Resources (org-v) notes that the interval lies beneath mineralization intersected in the previous hole and was stopped in a fault zone. Low-grade stringer and disseminated sulphides in large swaths of altered volcanics characterized hole 2, as well as hole 1.

Situated near the town of Buchans, the 7.25-sq.-km property was explored by Noranda (nor-t) in 1973, followed by Inco (n-t) in the 1980s. The latter sank 10 holes to about 100 metres below surface — far shallower than the 300 metres of vertical depth since tested by Orogrande.

A follow-up program, including borehole geophyiscal surveys, is to begin shortly.