EXPLORATION ’93 — Variety of minerals sought in

Estimated exploration expenditures fell slightly in Saskatchewan in 1992 to $22 million from $23 million the previous year. The province is anticipating a similar level of activity for 1993.

Although no new world-class uranium discoveries may be reported this year, five major new projects are being reviewed by the federal-provincial Environmental Review Panel: Cigar Lake, McArthur River (P2 North), Midwest and McClean, and at Cluff Lake, the Dominique-Janine pit extension. Of these, the McArthur River project recently received approval to proceed to the underground exploration stage within a demanding set of guidelines. An excellent reserve base and soft uranium prices continue to curtail exploration.

Currently identified reserves within the Athabasca Basin are sufficient to sustain production well into the next century; however, some 10 companies still remain involved in uranium exploration joint ventures. Cameco (TSE) is the key player and commands some 50% of reserves, although it recently sold its 20% stake in the Cluff Lake Mine to Corona Grande Exploration.

The number of companies exploring for gold has fallen to about a dozen compared with more than 60 in 1988. Work continues to be concentrated in the La Ronge and Glennie domains.

In the former, at Contact Lake, a Cameco-Uranerz Exploration and Mining-Westward Explorations (VSE) joint venture completed 14,027 metres of drilling in early 1992 and a further 6,359 metres at the end of the year. The eastern BK3 zone below Contact Lake, lateral and vertical extensions of the BK1 and 2 zones, and the western extension of this shear zone hosted deposit were tested. Cameco reports geological reserves of 1.62 million tonnes grading 9.6 grams gold per tonne (0.28 oz. per ton).

Although approvals are in place for mining this deposit, which is located in the mineral exploration zone of La Ronge Provincial Park, the joint venture has yet to make an underground exploration or production decision. Golden Rule Resources (TSE) agreed to purchase the Jolu mine and mill assets for $786,000 from Corona-Hemlo (TSE). The 400 tonne-per-day (tpd) mill, which ceased operations in August, could serve as a central mill for eight prospects (Tower East, Golden Heart, Weedy B, Nikko, Corner Lake, Komis, EP, and Twin) located within a 65 km trucking distance.

Waddy Lake Resources (TSE), a Golden Rule affiliate, has completed a 2,735-metre infill drilling program on Komis, which redefined this prospect as a potential higher-grade underground operation rather than an open-pit project.

Elsewhere in the La Ronge domain, Uranerz continued grassroots exploration, particularly in the Bernaski Bay pluton. Alligator Resources, a Saskatoon-based prospecting syndicate, obtained assays ranging from 0.69 grams (0.02 oz.) to 247 grams (7.2 oz.) gold along the 37-metre exposed length of the “Broken Hammer” vein northeast of Lower Waddy Lake. Kristo Gold ran a pilot plant operation at the old Anglo-Rouyn mine site, processing about 4,000 tonnes of tailings to test the feasibility of economic reclamation of gold, silver and copper.

In the Glennie domain, the Seabee mine of Claude Resources (TSE), which opened in November, 1991, has produced around 5,000 oz. gold per month. Despite earlier negative estimates, which saw minable reserves in September, 1992, drop to about seven months’ supply, the operation continues to exceed capacity.

In 1992, gold recovered was 58,664 oz. from 167,515 tonnes of ore grading 11.5 grams (0.34 oz.) at a milling rate of 458 tpd. Claude is cautiously optimistic that aggressive underground exploration and development will continue to add to the 12 months’ supply of reserves claimed at year end. Nearby, at Santoy Lake, a Claude-Manchester Resources (ASE) joint venture conducted a 7-hole, 640-metre drill program to test two of the six structurally hosted gold zones on this property.

Cameco and Homestake Canada were also active on properties in the Glennie domain and Cameco recently staked several dispositions south of the Seabee Mine.

About half of 1992 base metal expenditure targeted volcanogenic massive sulphide (VMS) deposits in the Shield-margin and sub-Phanerozoic area south and west of Flin Flon. This area is the current focus of a major federal-provincial geoscience (NATMAP) program and is deemed to have high exploration potential.

Outside of the immediate Flin Flon camp, VMS mineralization associated with felsic volcanics is known at Bigstone, Miskat and McDermott lakes, and McIlvenna Bay. The McIlvenna Bay deposit contains minable reserves of 13.8 million tonnes grading 0.83% copper and 4.66% zinc.

This year, a Granges (TSE)-Cameco joint venture drilled the Bigstone Lake with previously reported reserves of 1.45 million tonnes grading 2.9% copper and 308,411 tonnes grading 11.2% zinc.

Inco (TSE), Rio Algom Exploration, Cominco (TSE), Hudson Bay Mining and Smelting (TSE) and Cameco were active in this area searching for VMS deposits or “Namew Lake type” nickel-copper-platinum group element deposits hosted by ultramafic rocks. Overall, a similar level of activity is anticipated in 1993. In the exposed Kisseynew domain, convincing reinterpretative mapping of high-grade Kisseynew gneisses as felsic volcanic rocks and recognition of potential metamorphosed VMS alteration zones has provided impetus for the search for “Sherridon-type” deposits.

Both Cominco and BHP Utah Mines carried out drill programs in the Wildnest- Attitti lakes area northwest of Flin Flon.

Noranda Exploration has optioned claims belonging to Consolidated Pine Channel Gold (VSE) in the Reindeer River area north of Royal Lake, where four VMS sulphide showings have been outlined. Noranda is also active in the Wollaston domain, where it controls the Duddridge, Sito, Fable, Johnson (N), Janice and Rafuse Lake showings of copper and zinc-lead hosted by Wollaston group metasediments.

As of March 1, 1993, the area staked for diamond exploration rose to around 1.03 million hectares, mostly in the Prince Albert-Carrot River area, but also along the Molonosa Arch between Prince Albert and La Ronge and in the far south and southwest of the province.

In part, at least, recent land acquisition has been stimulated by diamond indicator mineral surveys and geophysical interpretations undertaken by the Saskatchewan Geological Survey.

Monopros may earn a one-third interest in the Fort a la Corne project of Cameco and Uranerz; in 1992, the joint venture bulk sampled the biggest and most productive pipes, based on last year’s bulk sampling which yielded a total of 160 macrodiamonds.

Rhonda Mining (ASE) drilled four holes in the Sturgeon Lake area where previous exploration programs have outlined a large, glacially deposited train of kimberlite and shale chips. The train includes three rafts of kimberlite each up to the size of football field.

The company is currently drilling adjacent to a known diamondiferous kimberlite held by the Cameco-Uranerz-Monopros joint venture. Diamond exploration expenditures will exceed those for gold in 1993. — Andrew Gracie and Pamela Schwann are Resident Geologists, La Ronge, for Saskatchewan Energy and Mines.