Exploration ’88 FALCONBRIDGE

In 1988, Falconbridge Ltd.’s surface exploration budget will be $24 million compared with $22.5 million in 1987. Michael Knuckey, vice-president, exploration, says the proportion of expenditures in such core areas as Sudbury and Timmins, Ont. will increase to 64% from 55%. On a commodity basis, greater emphasis will be placed on exploration for nickel/ copper/platinum-group deposits (35% in 1988 compared with 24% in 1987) and on volcanogenic, polymetallic massive sulphides (39% in 1988 versus 34% in 1987) rather than for gold (24% in 1988 versus 39% in 1987). Joint-venture projects will continue to be an important activity and, since almost all are directed towards precious metals, Falconbridge’s overall exposure will be increased correspondingly. Additional funds contributed by joint-venture partners amounted to $7.5 million in 1987.

In Sudbury, deep drilling will continue to explore the Lindsley property, where four mineralized zones of potentially economic interest have been discovered at depths varying from 2,000 to 6,000 ft below surface within an overall strike length of more than 3,000 ft.

In the Timmins camp, about 196,800 ft of diamond drilling is planned for 1988 to explore targets below 50 ft to 200 ft of overburden in the townships around the Kidd Creek mine. West of the Owl Creek gold mine, a joint venture with Syngold Exploration will be continued in 1988. East of Matheson, Ont., diamond drilling will resume to evaluate the promising gold-bearing structures on the Garrison Creek property in a joint venture with the Coniagas Mines.

Exploration directed from the Winnipeg office will continue to focus on the Hammond Reef gold property northeast of Atikokan, Ont., the nickel/copper/platinum potential of the Bird River Sill (in southeastern Manitoba) and on volcanogenic massive sulphide properties in the Snow Lake area.

In British Columbia, the major project will be a joint venture with Esso Minerals on Vancouver Island. Encouraging indications of precious- metal-rich polymetallic massive sulphides were discovered in 1987 on the Chemainus property, adjoining Abermin’s Lara deposit.

Joint-venture activities are most extensive in Quebec. Exploration programs for precious metals will continue with Beaufield Resources in the Barry Lake area, with International Thunderwood on the Pelletier Lake (Stadacona mine) property south of Rouyn, with Minnova Inc. in the area around the Lac Shortt mine and with Oasis-Messeguay for platinum group metals at Kenty Lake in the Ungava Penninsula. In addition, Falconbridge will begin a 2-year program to further evaluate its properties in Ungava. The Falconbridge exploration office has been relocated in Rouyn-Noranda, Que. It was previously in Quebec City.

Exploration from the company’s Windsor, N.S. office focuses mainly on precious metals in the Meguma terrain of Nova Scotia, the Grub-line in Newfoundland and in a joint venture in the Slacks Lake area of New Brunswick.

Overseas, Falconbridge is carrying out base and precious metal exploration in the Dominican Republic. And in Botswana, in a joint venture funded by De Beers Consolidated Mines, an underground bulk-sampling program will begin in 1988 to evaluate a diamond-bearing kimberlite pipe at Gope. In the Francistown area, Falconbridge Exploration (Botswana) has elected not to participate in the Map Nora gold project, which is being brought into production by U.S.-based Phelps-Dodge. Exploration will continue on other base and precious metal properties in the area. In Zimbabwe, wholly-owned subsidiary Blanket Mines will continue extensive exploration programs on properties in the areas of the producing Blanket and Golden Kopje gold mines.

Falconbridge’s main exploration efforts are directed towards finding or acquiring new reserves close to core metallurgical operations in Sudbury, Timmins, Kristiansand (Norway) and Bonao (Dominican Republic). In other areas, exploration programs at appropriate scales provide opportunities for product diversification.

The company maintains a permanent exploration staff (in North America and overseas) of 60 employees, including 42 professional geologists. In addition, 25 geologists and technicians are engaged on 6-to-12-month contracts. Up to 50 students are employed on a seasonal basis.

Exploration offices are maintained across Canada, in Vancouver, B.C., Winnipeg, Man., Sudbury and Timmins, Ont., Rouyn, Que., and Windsor, N.S. Outside Canada, Falconbridge carries out exploration from offices in the Dominican Republic, Botswana and Zimbabwe.