Exploration ’88 SMDC

Saskatchewan Mining Development Corp.’s exploration expenditures are expected to increase in 1988 to about $8.5 million from $5 million spent in 1987. The largest portion, about $6 million, will be spent on Saskatchewan gold exploration. About $2.5 million is targeted for uranium exploration. This year, smdc will be involved in about 80 projects, of which 54 will be gold plays and 22 uranium. The total expenditure on all exploration projects in which smdc has interests may reach $31 million in 1988, with 58% directed to gold exploration and 42% to uranium.

One area of major gold exploration activity will be the Star Lake portion of the La Ronge Belt, where drilling is scheduled on the Star Lake, David Lake, Tamar, Jojay and Fork Lakes projects, operated by smdc; on the Transom Lake property, operated by Goldsil Resources; and on the Blindman Lake property, operated by Golden Rule Resources.

High-grade gold mineralization was discovered at the Jasper zone on the Fork Lakes project in the summer of 1987. Following this, drilling programs by smdc on the Fork Lakes project and on the adjacent Transom Lake project by Goldsil Resources confirmed several plunging shoots of mineralization over a strike length of about 300 m. A further 500-m length of mineralized structure remains to be drill- tested this winter. Given the large size of the structure, and with only 23 holes in the Jasper zone to date, there is good reason to expect further encouragement from 1988 drilling, the company says. Other partners in the Fork Lakes project are Golden Rule Resources, Mahogany Minerals Resources and Shore Gold Fund.

Drilling will continue with partners on several gold projects associated with the Byers Fault, near the north end of the La Ronge Belt, and also on the Preview Lake project, with Uranerz Exploration & Mining and Windarra Minerals as partners. This property is at the south end of the belt. Activities in both areas will include advanced drilling.

Exploration, with Husky Oil as partner, will continue on the Amisk Lake project. The 1988 program will include further drilling on the Laurel Lake gold-silver deposit and, very likely, underground exploration via a decline, to begin about mid-year.

Smdc is one of the world’s major uranium producers and will continue to participate in uranium exploration in the Athabasca Basin in 1988. Exploration is planned in the Cluff Lake area where Amok Ltd. has been successful in recent years in adding to reserves for the existing mill. Exploration will also continue on a number of projects in the region around, and to the north of, the Key Lake mine. In addition, smdc participates as a minority or carried participant (through farm-outs) with a number of partners in the continuing systematic drill- testing of sub-Athabasca conductors throughout the eastern part of the Athabasca Basin.

In 1988, smdc will be looking at some geographical diversification of its precious metals exploration program, which has been concentrated for several years within Saskatchewan. Initially, this will involve a review of available exploration opportunities, including some inactive smdc properties in Manitoba and elsewhere.

Smdc has a permanent staff of about 30 geologists based in Saskatoon and La Ronge under exploration vice- president G. D. Pollock and exploration managers Esko Parviainen and Jan Bloemraad.