EXPLORATION ’93 — Marked increase in ground acquisition in

Projected exploration expenditures in Manitoba in 1992 were $30 million, similar to the previous year’s level of spending.

A marked increase in ground acquisition is taken as an indicator of improved activity in coming years. In 1992, 768 claims, three exploration permits and four special permits were recorded, compared with 585 claims and no permits in 1991.

The total area of mineral dispositions in good standing at the end of 1992 was 2,694,952 hectares, compared with 2,037,303 hectares at the end of 1991 (see Table).

In order to maintain and increase mining’s contribution to the provincial economy, the Manitoba government introduced several measures aimed at encouraging mining investment in the province. A major initiative is the elimination of the corporate capital tax on exploration.

Incentive programs directed at different levels of the industry were implemented in 1992. Large companies can now benefit from a tax holiday for new mines and a mining tax exploration incentive. Junior mining companies and private investors can avail themselves of a 25% grant for investments in approved exploration programs. Prospectors can apply for assistance and obtain a 50% reimbursement of their expenditures up to $15,000 on approved projects.

Major exploration efforts continued to be directed at base metals, but other commodities started to draw attention in 1992. The hunt for diamonds attracted several operators who acquired ground in the southern part of the province and in the Snow Lake and The Pas areas.

Narrow zones of kimberlite breccia had been intersected in 1983 by Falconbridge on a property 26 km south of Snow Lake. The company recently extended this holding by staking additional claims.

The large chromite deposit in the Bird River area, southeastern Manitoba, is again a focus of interest. Research performed at Laurentian University at Sudbury, Ont., has shown that this deposit is a viable source of chromite concentrate for chromium alloys.

At the Trout Lake mine near Flin Flon, Hudson Bay Mining and Smelting (TSE) and partners Granges (TSE) and Manitoba Mineral Resources (MMR) completed development of a hanging wall cross cut at the 560-metre level to allow better drill access to mineralized zones beneath the existing mine workings. Drilling to further define these deeper zones continued in 1992, although new assay results have not been released.

Hudson Bay Exploration (HudBay) continued to drill and conduct geophysical surveys in the Chisel Lake-Anderson Lake area, as well as at Woosey Lake, Morgan Lake and Wolverton Lake.

In the Simonhouse Lake-Namew Lake area, HudBay conducted linecutting and geophysical programs in early 1992. Considerable drill testing is expected in 1993.

Northeast of Snow Lake, MMR, in joint venture with HudBay, commenced a drilling program on the Bur zone near the old Osborne mine. Some encouraging results were encountered in initial shallow drilling.

On the southern extension of the Flin Flon-Snow Lake belt, MMR encountered alteration with copper-zinc stringer mineralization at its Limestone Bay property, Moose Lake. MMR intends to conduct additional drilling there in early 1993.

Other important exploration projects in the Flin Flon area included Thompson Lake area, Minnova (TSE); West Arm joint venture, Granges and HudBay; Athapapuskow Lake, Cameco (TSE); Leo Lake discovery, Granges; Manistikwan Lake, Noranda (TSE); Pinebay property, Placer Dome (TSE); Vamp Lake, Rayrock Yellowknife Resources (TSE); and Kississing Lake, Canmine Resources (CDN). Drill programs were conducted by HudBay at Darrol Lake near the Ruttan Mine and by Bellex Mining (VSE) and partner Eastmin Resources (VSE) at MacBride Lake where an intersection of 6.1 metres of 10.08% zinc and 0.30% copper was obtained in 1991 on the Knobby Lake deposit.

Mapping and prospecting programs were conducted by MMR in the Fox Mine area, and TSJ Consultants at Wellmet Lake.

In early 1992, Inco Exploration and Technical Services, a unit of Inco (TSE), conducted geophysical surveys and drilling programs in the Owl Lake, Mid Lake-Liz Lake, Burntwood River and Pipe Lake areas.

At Inco’s Manitoba division, underground development continued on the 1-C and 1-D orebodies. Production from the 1-C orebody is anticipated to average 975 tonnes per day, increasing to 1,800 tonnes per day by 1994. Limited production is expected from 1-D in 1994 at an average of 160 tonnes per day, which will increase to 3,600 tonnes per day by the year 2001. High levels of exploration activity continued on the southern extension of the Thompson Nickel Belt. Falconbridge drill-tested a nickel occurrence at William Lake and reports intersections varying from 0.56% nickel over 265 metres to 3.3% nickel over 4.6 metres.

Falconbridge also conducted drill programs at Minago River and Cedar Lake, and in the Wabowden area at Setting Lake, Resting Lake, Kiski Creek and the Manibridge Mine area.

MMR conducted geophysical surveys and drilling in the Moose Lake-Minago River area and Cominco (TSE) conducted a large geophysics program and a 5-hole drill program on its Special Permit at Lake Winnipegosis.

In the search for precious metals, gold exploration in the Flin Flon-Snow Lake belt was rather subdued in 1992. Drill programs were conducted by Cameco at Bakers Narrows, Noranda at Elbow Lake and Granges near the Tartan Lake mine site.

Local prospectors conducted sampling and trenching programs at Naosap Lake, First Cranberry Lake, Kisseynew Lake and Wekusko Lake.

In the Lynn Lake belt, Golden Band Resources (VSE) conducted an 18-hole drill program at the Farley Lake deposit in order to earn the 44.83% interest of Mingold Resources in the property.

Golden Band may acquire the interest by making staged payments of $275,000 and completing $3 million in exploration over 5 years. Majority holder MMR intends to spend up to $370,000 in early 1993 on additional drilling at Farley Lake.

In the Lynn Lake area, Cazador Explorations (VSE) signed an agreement with DCC Equities to earn a 50% interest in many of the properties previously owned and operated by LynnGold Resources. The agreement is subject to Cazador spending $400,000 on drilling and a feasibility study.

The property list includes the Lynn Lake gold milling facility, the MacLellan Mine, the Fox Mine and 31 other properties, some of which have reserve figures. Cazador also acquired a 49% interest in the Burnt Timber gold deposit from Trans America Industries (VSE).

In the Gods Lake greenstone belt, in eastern Manitoba, Phelps Dodge carried out a geophysical program on the Little Stull Lake property and Mancree Mines conducted diamond drilling at Island Lake.

In early 1992, Noranda Exploration drilled in the Oxford Lake and Carrot River areas and, with junior partner Bellex, on the Monument Bay project. Promising gold-bearing zones had been identified in 1991 in a shear several kilometres in length. During 1992, Bellex has been inclined to turn its attention towards base metals (MacBride Lake project) and diamonds in other parts of the country.

In the Rice Lake belt in southeastern Manitoba, Cameco Resources carried out prospecting, mapping and geochemistry on the Ogama-Rockland property, a former producer. Local prospectors conducted small programs in various parts of the belt.

In the search for other mineral commodities, Tantalum Mining Corp. of Canada continued to explore for pegmatites in the Bird River area.

— Bruno Esposito is Assessment Geologist and D.E. Prouse is Resident Geologist, The Pas, for Manitoba Energy and Mines.