Central Crude’s Mishibishu find ignites interest

Important looking ore findings on the Eagle River gold property of Central Crude Ltd. (VSE) are igniting exploration interest in the Mishibishu area just 30 miles west of here.

Until recently a relatively little- known company, it has been making market waves of late on the Vancouver Stock Exchange where it has soared from under $1 a share to $10 in less than a year in active trading. And the big buyer has been none other than Noranda (TSE) controlled Hemlo Gold Inc. (TSE) which not only owns a 60%-direct- operating interest in the property, but has now acquired upwards of 18% of Crude’s issued shares on the open market and could be aiming at a 51% control position.

Current interest focuses on an unusually strong steeply dipping quartz vein system in a diorite formation that was discovered less than a year ago. This has been traced on surface for over 7,000 ft, with frequent occurrences of visible gold. Known as the 8 Zone, it appears to pinch and swell, and would probably average at least 10-15 ft in width.

Close to 150,000 ft of diamond drilling has now been carried out using three machines which have probed the structure to depths of 1,000 ft for a length of 5,600 ft and still open at both ends. Working around the clock, these machines are turning out some 24,000 ft of core every month.

The gold is widespread but erratic so that any accurate grade determination will require considerably more work. Noranda is not prepared to come out with any tonnage estimates at this time. But it is certainly carrying out a methodical Cadillac-type job, The Northern Miner can attest from a visit to the site, a job that will continue through the winter.

The cost will likely reach $10 million by year-end, with a further substantial expenditure planned for underground work next year.

Of the more than 150 holes drilled to date, 70% have returned gold values in excess of 0.10 oz. Some of these are excellent, like C-36 which returned 36.1 ft of 0.22 oz, C-71 with 26.2 ft of 0.28 oz and C-89 with 21.7 ft of 0.49 oz.

With so many good holes it is hard to believe that this doesn’t indicate a sizeable new mine in the making. Too, at the east end of this 8 Zone is an offshoot or parallel vein called the Bruce where current drilling is giving comparative values which just might suggest some open pit ore.

Everything still has to be flown into this property by helicopter, which is costly, but Noranda is now building a 12-mile road to link up with the Magnicon mine road. This should be usable within a few weeks when two additional heavier drills will be brought in to drill another series of holes to 2,500 ft. All drilling is being carried out under contract by Midwest Drilling.

Because of the rugged topography an adit approach rather than a decline will likely be taken for an underground bulk sampling program that could run to as much as 40,000 tons. That would be trucked the 45 miles or so to Hemlo Gold’s mill for grade determination and metallurgical purposes. (This would likely also produce some revenue).

When the underground stage is reached, it will be interesting to see if operator Noranda enjoys the same happy experience as did the Magnicon, which found a much higher grade from underground work than was indicated from surface drilling, due in part to the nugget effect of free gold of which there is considerable in the 8 Zone.

Elsewhere on this 300-claim property prospecting has recently turned up another new gold occurrence called the Thompson vein, 3.3 miles east of the 8 Zone. A similar looking quartz vein with visible gold, this has been traced for about 500 ft with widths of 5-8 ft. It is now being channel sampled, but grab samples assay up to 6.8 oz.

With hydroelectric power nearby and ready access soon to the Trans Canada highway, the logistics of developing a mine in this area would be much more favorable than that at most higher grade deposits in the more remote locations.

“We see this as a great gold belt with a lot of potential. We have high expectations,” geologist Garth Pierce, Noranda Exploration’s Division Manager, Northwestern Ontario told The Northern Miner. Other interests

The Central Crude company expects to retain its 40% interest in the Eagle River mine, and aims to do this with a maximum issue of 8.5 million shares, President Richard Nemis told The Northern Miner. It also holds a 50% or better interest in an additional 520 claims in the area.

It has just set up an exploration camp on the Oil City (VSE) claims at Pipe Lake four miles west of the Eagle River ground in which it can earn a 50% interest by spending $1 million over the next three years. A geological crew is already at work here carrying out soil sampling.

This new camp will also serve as a base camp for an exploration program to be carried out on the adjoining 217 claim block which Crude holds jointly with Dominion Explorers (TSE).

An exploration camp has also been established immediately east of the Eagle River property where Central Crude holds a 100% interest in 60 claims, as well as a block of claims held jointly with Joutel Resources (TSE) and ground held by HSK Resources (TSE) in which it has a 25% carried interest — 210 claims in all.