Exploration ’88 QUEENSTON

During 1988, Queenston Gold Mines expects its property interests will undergo a minimum of two underground exploration programs and four surface drill programs. Total exploration expenditures by Queenston in the year are estimated at $2.7 million, while a total of $6.9 million is expected to be spent by others on Queenston property interests. This does not include the underground exploration costs that will be incurred by Lac Minerals on the Macassa mine royalty properties, near Kirkland Lake, Ont. East of Kirkland Lake, Queenston’s main exploration effort concerns the Anoki underground ramp program with Inco Gold. It should be complete by mid-summer, with a possible production decision by the fall. Total exploration costs through 1987/88 are estimated at $7 million. On immediately adjacent lands, Queenston and Inco Gold expect to spend at least $1 million on a surface drilling program. That’s about double last year’s expenditures. The work this year will provide additional tests on both the Biroco and Esker zones, where important new gold values were obtained in 1987. Tests between the Anoki and McBean zones might also be performed.

On the company’s Upper Canada mine property, which produced more than 1.5 million oz from 1939 to 1971 at an average grade of 0.33 oz gold per ton, Queenston expects to complete a farm-in agreement for a minimum $1.5-million surface drill program during 1988. This property, one mile north of the Anoki program, is also the site of the McBean mill. The mill is to be used for custom mill tests and core-assaying, and it will be ready for full production of Queenston’s potential ore interests. Three miles further to the northeast, Queenston expects to initiate a $500,000, surface drill program on its Upper Beaver gold mine property. Production in the past graded 1.25% copper and 0.25 oz gold per ton.

West of Kirkland Lake, exploration on two principal Queenston property interests is anticipated. On the Macassa mine royalty properties, owned equally with Lac Minerals, Lac will probably continue underground exploration headings on a number of levels between the 5,000-ft and 7,000-ft horizons. Some of this work will open up areas where previous drilling indicated mineralization averaging 0.5 oz per ton across minimum mining widths. Costs of this work will be borne by Lac, and Queenston will receive royalties based on a formula related to gold production and the overall Macassa mine profit. Attempts to reach a suitable agreement for major exploration on Queenston’s Kirkland Lake West property, immediately west of the Macassa mine, will also be emphasized.

In Quebec, American Barrick Minerals (Canada) will carry out a further major drill program on the Pandora mine property in the Cadillac area, following up a number of ore-quality gold intersections obtained in 1987. Queenston retains a 25% interest in this property. The 1988 drilling program will be funded by Barrick.

Exploration will also be conducted on the Destor-Manneville joint venture, 25 miles northeast of Noranda, Que., with Canamax Resources and Bruneau Mining Corp. (npl); and on the Detour Lake joint venture, east of the Detour Lake gold mine in northern Ontario, with Falconbridge Ltd. and Bruneau Mining. Queenston also expects to expand its investigations for gold and base metals, with a continuing emphasis on the greenstone belts in Ontario and Quebec.