Drilling at Holloway indicates zone tapers off down plunge

The latest results from the Holloway project indicate that the Lightning zone, which has been characterized by consistently strong widths and grades since its discovery in 1989, may be coming to a dramatic end down plunge.

Testing the zone’s downdip and down-plunge extensions at depths of 600-800 ft., Noranda (TSE) encountered relatively weak gold mineralization over narrow widths in four key holes collared east of section 5900E. The intersections, including 0.007 oz. gold per ton over 4.2 ft. and 0.18 oz. over 2.6 ft., were pulled less than 200 ft. east of some of the project’s best holes.

“The zone does taper off. It has to come to an end sooner or later,” said Ian Atkinson, regional manager for Noranda Exploration, when The Northern Miner visited the site at the end of May. He added that the latest results would not affect Noranda’s reserve estimate — 4.7 million tons grading 0.24 oz. — for the Lightning zone.

Of the 22 holes featured in the recent batch of results, 18 were collared on the Holloway property, a 60-40 joint venture between Noranda and Freewest Resources (TSE). The other four tested mineralization on the Teddy Bear Valley Mines (CDN) claims, where a joint venture consisting of Noranda (51%), Freewest (34%) and Newmont Mining (NYSE) may earn a 70% interest.

Freewest shares reacted by gaining five cents to close at $3.40 on the day the results were released to the public.

Atkinson said that although the Lightning zone appears to be pinching out to the east, the stratigraphic package that hosts the zone continues down-plunge.

“The gold values do drop off, but the stratigraphic unit is still intact and still well altered,” he said. The host rock, a distinctive grey color, is a variolitic, strongly altered ultramafic.

In light of the favorable geology, Noranda continues to explore for eastern extensions. When the The Northern Miner visited the project site, two rigs were probing the south end of the Holloway property, just east of the Teddy Bear boundary and a stone’s throw from the Holt-McDermott headframe.

“We don’t know if this is just another zone of weakness,” explained Dennis Francoeur at Noranda’s head office.

Meanwhile, the partners are anxiously awaiting results of Noranda’s feasibility study, which is widely expected to provide the green light for underground exploration.

According to Francoeur, the study was delayed when Noranda hired former Wharf Resources (TSE) president David Libby as vice-president of engineering. Libby questioned the wisdom of sinking both a ramp and a shaft into the zone, as originally proposed. He favors a ramp-free operation.

Testing for shaft sites has focused on the area surrounding section 5700E, a zone of weak mineralization. “We’re drilling a cross-section of rocks to make sure there are no nasty surprises,” said Atkinson. To date, all the shaft site holes have been wedges off existing exploration holes.