Four drills busy at Holloway bet

Assay results should be available this month from another batch of drill holes on the Holloway gold project of 60/40 partners Noranda (TSE) and Freewest Resources (TSE) in northeastern Ontario. Drill results up to hole 130 were last reported in December. Since then, four drills have been probing easterly extensions to the Lightning gold zone. Recent drilling has also included holes on the Cadden claims which adjoin the Freewest-Noranda property to the east.

Preliminary reserves for the Lightning zone, based on results up to hole 130, have been estimated to be about 4.7 million tons grading 0.24 oz. gold per ton, according to Noranda. This year’s work is expected to add to that tonnage figure.

The company’s current objective is to build up enough reserves on the Freewest-Noranda claims in order to launch an underground program. A feasibility study is currently under way and should reach completion by sometime this summer.

No drilling has yet been done below the 2,600-ft. horizon, and the potential remains for additional reserves at depth. Other partners on the adjacent Teddy Bear property include Teddy Bear Valley Mines (OTC) and Newmont Exploration.

Early indications of the Lightning zone were first discovered by Newmont Exploration in April, 1988, when the company cut 41 ft. grading 0.28 oz. gold in hole 88-2. The Noranda-Freewest joint venture later pulled 57 ft. of 0.17 oz. in November of 1988.

Drilling is under way also on the Noranda-operated Golden Highway project which includes the adjoining claims of Canamax Resources (TSE) situated to the east of the Holloway project.

Meanwhile, Card Lake Resources (OTC) is planning a boundary survey of its claims which adjoin the Lightning zone before it launches a program of linecutting and geophysics to define drill targets. The Card Lake property is subject to dispute with Teddy Bear.

Another recent sign of the Holloway project’s growing potential is the purchase by Euro-Nevada Mining (TSE) of royalty interests from J.M. Asbestos and Manville Canada in the Harker-Holloway camp.

Euro-Nevada’s royalty package was acquired for $1.17 million and covers about 10,000 acres along the Destor Porcupine fault. It includes a 2% net smelter return on American Barrick’s (TSE) Mattawasaga gold zone, as well as royalties on gold properties optioned by Noranda from Canamax Resources. The latter forms part of the Golden Highway project where Noranda is spending $6.2 million to earn a 50% interest.