Crude gears up for accelerated program at Moss Lake project

Exploration at the Moss Lake property northwest of Thunder Bay, Ont., is set to increase markedly as winter freeze-up provides operator Central Crude (TSE) with access to the choicest ground. President Richard Nemis said he plans to move more rigs on to the site as soon as the ground around the deposit freezes. Two drill rigs are currently probing the QES zone, where Nemis hopes to prove the presence of a 75-million-ton, low- grade gold deposit.

Central Crude, 42% owned by Noranda (TSE) subsidiary Hemlo Gold Mines (TSE), has recently agreed to spend an additional $2.5 million on Moss Lake (for a total of $6.5 million) by the end of 1995, to earn a 60% interest in the property. Moss Lake is equally owned by Tandem Resources (TSE) and Storimin Exploration (ASE).

Results are pending on a 12-hole stepout program recently completed to the east of the QES zone, but Nemis is confident the drilling will extend the zone not only along strike but also, as suggested by infill drilling, to previously unexplored depths.

“As we go deeper, the grade appears to increase to a vertical depth of 800 ft.,” he told The Northern Miner. “This is well within the limit of a pit.”

Nemis said his ultimate goal is to outline a minable reserve in excess of 60 million tons at a grade of 0.035 oz. gold per ton or better. With preliminary reserves currently hovering at two million tons grading 0.17 oz., he admits he has a long way to go.

“We’re going to need a lot more drilling on the QES,” he said. Referring to Crude’s other big Ontario gold project, he added, “This is seven times bigger than Eagle River.”