EXPLORATION ’95 — Juniors busy near Voisey Bay

Several junior companies have started exploration programs on ground they staked or acquired near the Voisey Bay discovery in Labrador of Diamond Fields Resources (TSE).

This copper-nickel-cobalt deposit is being described as one of the largest base metals discoveries in decades in Canada.

International Canalaska Resources (VSE) recently started a first-phase exploration program which will include airborne geophysics, followed by a ground magnetometer survey, geological mapping, prospecting and heavy mineral stream sediment sampling. Once this phase is completed, drilling will begin on targets which have been identified.

Canalaska has signed a joint-venture agreement with Columbia Yukon Resources, a junior seeking a re-listing on the Alberta Stock Exchange. Columbia Yukon’s controlling shareholders are Douglas Mason and ASE-listed Waterfront Capital. The joint venture covers the terms of future development of Canalaska’s wholly owned VBE-1 and VBE-2 claim blocks (comprising about 7,900 acres), which are adjacent to Diamond Fields’ Voisey Bay project.

Columbia Yukon Resources can earn a half interest in Canalaska’s claim blocks by paying $100,000 and spending $900,000 on exploration over three years. It can increase this to 70% by completing a bankable feasibility study and arranging project financing.

Canalaska, which has other claim blocks in Labrador separate from this joint venture, will operate the project until Columbia Yukon has earned its half interest.

Two related juniors, RJK Explorations (ASE) and Greater Lenora Resources (TSE), plan to start geophysical work as soon as possible on four Labrador properties they acquired from Newfoundland Mining & Explorations. The Shapio Lake claim group (92 claims) is on the eastern edge of the Harp Lake intrusive, and ties onto claims held by Noranda. RJK and Greater Lenora report that there are nickel-copper showings along the contact between the anorthosite-gabbro and gabbro-troctolite intrusive. A nickel-copper-cobalt lake sediment anomaly has been identified on the property.

The Mistinippi Lake claims (65 claims), about 11 km south of the Shapio Lake group, were previously explored in 1971 by Kennco Explorations. This work is reported to have led to the discovery of numerous copper-nickel occurrences in semi-massive sulphide showings. Noranda has claims tying on to the north, east and south of this property.

The Shapio and Mistinippi claims, which are about 150 km south of Diamond Fields’ discovery, were acquired for their geological and structural settings. Both are subject to a 3% net smelter return royalty to the vendors. RJK and Greater Lenora have two groups of claims in the Kyfanan Lake region, about 150 km southeast of Goose Bay. Regional mapping in 1993 by government geologists is reported to have discovered a large body of layered mafic intrusive coincident with a nickel-cobalt-vanadium lake sediment anomaly. The juniors can earn a 70% interest in these claims by spending $500,000 on exploration over three years. At this point, a 70-30 joint venture would be formed with Newfoundland Mining & Explorations.

In late February, Vancouver-based Primero Industries (VSE) announced an agreement to acquire a 230-claim block about 3 km northwest of the Diamond Fields property. The junior intends to start an airborne geophysical survey of the property as soon as possible.

VSE-listed Freeport Resources has acquired 80 claim units totalling 1,976 hectares in the region. The junior’s claim holdings now total 154 units, comprising 3,800 hectares, with additional prospects under consideration. Freeport says 70 of its claim units are situated 24 km east of the Diamond Fields discovery, on Kikkertavak Island which covers ultrabasic rocks in possible layered intrusives.

The junior also reports that 30 units are held 40 km west of the discovery enveloping the largest gossan zone in the region. This gossan is reported to be anomalous in nickel, copper and cobalt. Ground geophysics will be conducted when weather conditions permit.