Eagle River drilling gets best hole yet in Mishibishu camp

Just as Noranda (TSE) puts the finishing touches to a final feasibility study on the Eagle River gold deposit near Mishibishu Lake, Ont., a new zone appears to be opening up. Drilling on an extensive shear zone 1.2 km east of the main deposit, Hemlo Gold Mines (TSE), a Noranda subsidiary, has hit high-grade gold mineralization over widths of up to 36 ft. Of the 10 holes drilled to date, eight cut the targeted shear. Four intersected significant widths of gold mineralization at depths of about 500 ft., including 36 ft. grading 0.22 oz. (cut) gold per ton over and 28 ft. grading 0.31 oz. (cut). The mineralized shear zone, 10-35 ft. in width, has been traced for 1,000 ft. and remains open along strike and at depth, according to joint venture partner Central Crude (TSE).

“These are by far the best holes ever drilled in the camp,” said Richard Nemis, president of Central Crude. In fact, the new zone could have a dramatic effect on the results of the feasibility study, he said. The partners are planning several more holes over the zone, and will hold off on any conclusions until they can get a handle on how the new results will affect current reserves.

To date, preliminary reserve estimates stand at 1.77 million tons grading 0.25 oz. The current program will include 7,000 ft. of drilling on the east zone. Another $1.6 million has been scheduled for at least five other targets on the property.

Nemis said the new zone is unique, because rather than occurring within a diorite intrusive like the main deposit, the quartz-flooded shear is hosted by volcanics. The localized shear is one of several occurring within a larger-scale deformation zone, he said.

Hemlo Gold has a 60% interest in the Eagle River project, while Central Crude holds the remaining 40%. Noranda is project operator.