Core Shack KREMZAR GOLD

A shear-zone-related auriferous quartz vein deposit wholly- owned by Canamax Resources, Kremzar has drill-indicated reserves of 1,102,000 tons grading 0.251 oz gold per ton. The deposit, 50 km northeast of Wawa, Ont., is open along strike and to depth. Gold was first discovered in the area in 1924 by Patrice Kremzar. In 1940 M. J. O’Brien Ltd. optioned the property and discovered the Kremzar deposit. Canamax formed a joint venture with Kremzar Gold Mines, a 93%-owned subsidiary of Algoma Steel, in 1983. In March, 1987, Canamax reached an agreement with Kremzar Gold Mines to purchase its 50% interest in the project, giving Canamax a 100% interest. Algoma Steel retains a 4% net smelter royalty payable after payback.

In 1983 an airborne magnetic and vlf-em survey was flown over the property and a program of stripping, channel-sampling, geophysics and diamond drilling followed during the next few years. In 1986 underground development commenced with a ramp driven to 70 m and drifting on the 35-m and 65-m levels.

The regional geology is dominated by an east-west-striking metamorphosed sequence of Archean mafic and felsic volcanic rocks, sedimentary rocks and minor carbonate-sulphide facies iron formation of the Wawa greenstone belt. The sequence is intruded by felsic and mafic dikes. The regionally extensive east- northeast-striking Goudreau Lake thrust fault as well as local splays and shear fractures control the distribution of gold mineralization in the Wawa greenstone belt. The Kremzar gold deposit consists of three en echelon auriferous quartz vein-bearing shear zones, known as the B, R and X horizons, within metamorphosed, hydrothermally altered fine-to-coarse-grained mafic volcanic rock. The horizons strike 130 degrees, dip vertically to 70 degrees to the southwest and vary in width from two to 28 m. The B and R horizons have been traced by surface drilling for more than 240 m and are exposed at surface. In the northwest part of the deposit, the R horizon is parallel to the B horizon; however, in the southeast the B and R horizons merge. The X horizon was discovered at depth by drilling the hanging wall of the B horizon.

The predominant material within the shear zones is dark grey auriferous cherty quartz with potassic feldspar, up to 50% biotite, and accessory carbonate, sericite, pyrite, pyrrhotite and fine-grained black magnetite. The majority of the gold occurs within silicious ore which consists of lensoidal, cross-cutting quartz veins. The veins trend 30 degrees between the hanging wall and the footwall of the dark grey cherty quartz and plunge 45-50 degrees to the northwest. The pyrite and pyrrhotite vary in content from 2% to 5% and are commonly interfoliated with the biotite and also envelop the silicious ore. Gold also occurs in late-stage tensional veins which form a ladder system orthogonal to the silicious ore and which contain trace amounts of chalcopyrite, sphalerite, galena, arsenopyrite and minor tourmaline.

Wall rock alteration consists of potassic metasomatism, carbonitization, silicification and sulphidization. Potassic metasomatism, represented by abundant biotite in the mafic volcanic rock, sericite in the felsic volcanic rock and potassium feldspar in the cherty quartz is visible for up to 10 m from the sheared contacts of the deposit.

Visible gold occurs in patches termed “dust clouds” which reach up to one metre in diameter and contain from five to 50 fine particles. Gold also occurs as individual, irregularly shaped grains of up to 0.5 mm in diameter, many of which occur on the grain boundaries of pyrite and pyrrhotite.

Near the Kremzar gold deposit, unaltered mafic volcanic rock averages fewer than 0.04 parts per million (ppm) gold whereas the weakly altered rock ranges between 0.04 ppm and 1 ppm gold. Intensely altered areas average 1-5 ppm gold and zones of silicification yield greater than 5 ppm gold.

Feasibility studies were conducted in the fall of 1986 with positive results for an initial 500-ton-per-day operation blossoming to 700 tons per day at full production. Mining plans include the extension of the ramp to a depth of 110 m and sublevel retreat mining with mechanized cut-and-fill below 110 m. The proposed start-up date is the second quarter of 1988. Pamela Phillips is a Toronto-based consulting geologist. She would like to thank Bob Knutson and Gordon Yule of Canamax Resources for their assistance.