Exploration in the Red Lake district of northwestern Ontario has not been restricted to the area around the two major producing mines east of town.
While the western part of the belt is usually quieter, it is now the site of grassroots exploration, as well as mine development.
Madsen Gold (TSE), which is rehabilitating the old Madsen Red Lake mine in Heyson Twp., has announced further drill results from the No. 7 vein. Since the last results were released, five holes have been drilled and four of those contained visible gold. Grades were up to 322 grams gold per tonne (9.4 oz. per ton) in high-grade intersections.
Preliminary estimates of the resource in the new zone show 8,800 tonnes grading 16.8 grams gold per tonne. After high-grade assays are cut to 34.3 grams per tonne (1 oz. per ton), the cut grade is 8.5 grams. Experience in other Red Lake mines suggests the zone will have a minable grade closer to the uncut estimate.
Madsen has raised $1.5 million through private placements of 200,000 flow-through shares and 400,000 units consisting of one share and one warrant.
Also in Heyson Twp., East West Resource (VSE) has used induced-polarization (IP) surveying to trace a known mineralized shear zone for 800 metres. The company believes that intensely pyritized zones along this structure may represent shoots of gold mineralization.
One showing along this shear, at Boyden Lake, has yielded gold values of up to 4.6 grams per tonne. Three other holes drilled on the property have been sampled, and assay results are pending. Five more holes are planned, to test a showing at Spruce Lake and several IP anomalies along the shear.
To the northwest, in Ball and Todd twps., several properties have been picked up by Redbird Gold (ASE). An agreement with Ides Exploration, a private company in Thunder Bay, Ont., gives Redbird the option to earn a half interest in Ides’ Pipestone Narrows and Bridget Lake properties. Ides receives $70,500 and 100,000 shares in Redbird, which is required to spend $75,000 on exploration during the first year of the 3-year agreement.
Under the second agreement, with a Thunder Bay prospecting syndicate, Redbird has the option to acquire four properties for $32,500 cash and 100,000 shares. The syndicate retains a 2% net smelter return.
The Bridget Lake property was tested as recently as 1963, when Cochenour Willans Gold Mines trenched and drilled a gold showing. Surface channel samples graded 22.9 grams gold over a 4.8-metre width, with narrower zones of higher-grade material. Subsequent drilling encountered quartz-carbonate veins 0.3-1.3 metres wide, with gold in concentrations of 4-48 grams.
The other properties have surface gold showings or lie along strike from known surface showings.
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