EXPLORATION ’94 — Exploration activity at Ontario mining

Despite the flurry of exploration being conducted by Canadians around the world, many companies continue to search for mines in the major mining camps of Ontario.

Most of this activity is centred around current or past-producing mines. Although many juniors are conducting grassroots exploration, several senior companies are carrying out more advanced work near producing properties. Earlier this year, Kinross Gold (TSE) discovered two new horizons at the Hoyle Pond gold mine in Timmins. The two horizons, collectively known as the 1060 alteration zone, are steeply dipping, sericitized, silicified and pyrite-bearing.

Meanwhile, at the nearby Kidd Creek mine, Falconbridge (TSE) has uncovered a new zone of copper-zinc mineralization below the 5,600-ft. level. Four holes were drilled between 7,500 and 9,800 ft. below surface. The average grade of the intersected mineralization was 3% copper, 4.8% zinc, 0.85% lead and 5.25 oz. silver per ton over a horizontal thickness of 165 ft.

Falconbridge is also exploring southeast of the Onaping mine, near Sudbury, where earlier surface drilling intersected 2.51% nickel and 1.97% copper over 52.5 ft. at a depth of 7,500 ft.

Elsewhere in the Sudbury area, Inco (TSE) plans to spend $230 million over the next three years on two projects. The nickel giant will lay out about $72 million to advance development at its Victor copper-nickel deposit, as well as $150 million to develop the McCreedy East nickel-copper deposit. The program at Victor encompasses the sinking of a shaft

from surface to a depth of 5,800 ft. Also planned are 5,500 ft. of lateral development and 125,000 ft. of drilling to test for mineralization to 9,000 ft.

The deposit consists of two mineralized zones, known as the upper and lower, which exist at depths of 5,000 and 7,000 ft., respectively. The upper zone has a mineral reserve of 6 million tons averaging 0.54% copper and 2.26% nickel, whereas the lower zone contains 7 million tons averaging 5.1% copper and 1.9% nickel, as well as 0.22 oz. gold per ton and platinum group metal values.

Work at McCreedy will be aimed at developing Inco’s largest proven, undeveloped nickel-copper deposits within the Sudbury Basin. All told, the West, East, Main and 153 orebodies are expected to yield 22.5 million lb. nickel and 77.5 million lb. copper annually over 17 years.

Farther west, in Wawa, River Gold Mines (TSE) has drilled 52 holes at its Eagle River gold project, and results from the No. 6 zone suggest the overall grade is about 15% higher than previously estimated. Uncut assays ranged between 0.15 and 1.5 oz. over 1.8 ft. and 14.8 ft.

In addition, drilling has uncovered multiple parallel zones close to Zones 6 and 8, which could be mined by narrow and selective means.

The company plans to drill more than 100 holes to define production areas. Two rigs are drilling definition holes at 33-66-ft. spacings, as well as exploration holes to test new priority targets.

Earlier last month, Placer Dome (TSE) approved a US$35-million project to deepen the shaft at its Campbell gold mine near Red Lake. Placer will deepen the shaft by 1,820 ft., to 6,140 ft. As well, Placer will install a crusher, production hoists and larger skips.

Placer is also exploring its 68%-owned Musselwhite gold property with joint-venture partner TVX Gold (TSE). Supplies were moved in along a winter road as part of a plan to re-examine the mine, situated north of Pickle Lake. The shaft was dewatered and a new hoist and headframe were installed in preparation for mining a bulk sample and constructing underground drilling stations.

Placer and TVX have budgeted $19.7 million for all expenditures, including a 65,600-ft. surface drill program, to be made before the end of the first quarter of 1995.

Ore reserves within the East Bay deposit are 4.6 million tonnes at a grade of 0.28 oz., while reserves in the West Anticline zone total 3.2 million tons averaging 0.17 oz.

If all goes well, Placer and TVX will spend $150 million to construct a 2,200-ton-per-day operation which could enter production as early as 1997. In the Kirkland Lake area, several juniors have entered joint-venture agreements with Cyprus Canada, and exploration in the region has been spurred on by a new discovery east of Kirkland Lake.

Late last year, Agnico-Eagle (TSE) affiliate Sudbury Contact (TSE) discovered gold on its Victoria Creek property, having intersected 0.13 oz. over 9.8 ft. The mineralization is in several zones within pyritic, felsic, crystal ash-tuffs that contain up to 15% pyrite.

After completing 20,000 ft. of drilling, the company announced a mineral inventory of 1.25 million tons averaging 0.12 oz. Results from the second phase of drilling, which totaled 50,000 ft., are awaited.

Not far away, Cyprus Canada has optioned three properties which straddle the “Kirkland Lake Main Break.”

The company has completed a 20-hole, 25,000-ft. program on Queenston Resources’ (TSE) Amalgamated Kirkland property and has also optioned Queenston’s Kirkland Lake West property, where drilling returned (among other values) 0.083 oz. over 4.9 ft. at a depth of 2,000 ft. below surface. In addition, Cyprus is earning a 70% interest in the Rand property by spending $1 million on exploration and paying $200,000 to International Homestead Resources (VSE).