Geology makes Red Lake high-potential area

Red Lake is still one of the high potential mining camps of Ontario, according to regional geologist Brian Atkinson. The primary reason is clearly the geology despite the widespread covering of overburden. Atkinson says his six years of field experience have shown that the overburden is quite shallow in many areas. Frequently, it is less than 15-22 cm thick, readily amenable to basic prospecting procedures, stripping, panning and soil/concentrate geochemistry. Mineral claims staked in the Red Lake area were up slightly from 1841 in 1989 to 2,264 in 1990. But there has been a decline in advanced stage exploration coinciding with the loss of flow-through financing. On the regional front, the Ontario Geological Survey recently completed an EM and Magnetic survey of the Birch Lake area and the data will be released this summer.

Zahavy Mines’ (ASE) gold-silver-lead-zinc property in the Favourable Lake area is on hold. The latest work was done by Echo Bay Mines (TSE) and entailed basic geological work in areas remote from the site of underground development. The objective was to determine if the potential existed for stratabound mineralization. The property is the site of the old Berens River mine, active 1938-49.

Teck’s (TSE) Dixie Lake prospect, 25 km south of Red Lake, saw the completion of an airborne survey and down-the-hole geophysics last summer. A winter ground geophysics program has recently been completed. The property hosts a preliminary reserve of 381,000 tonnes at a grade of 4.5 grams gold per tonne. Mutual Resources (VSE), which has an option to earn a 100% interest in the property, has optioned the property to Teck. Teck can earn a 60% interest by spending $2 million.

Red Lake Buffalo Resources, renamed Madsen Gold (TSE), as of February, 1991, continues to explore the immediate vicinity of the old Madsen mine. McFinley Red Lake Mines (TSE) has recently settled a dispute with Dominion Bridge over the construction of a 150-ton-per-day test mill. The ore requires bulk testing because of the erratic nature of the gold values. Preliminary reserves are estimated at 807,000 tonnes grading 7.2 grams per tonne. Pending the outcome of current joint venture negotiations, work at the property, about five kilometres from the Campbell mine, will resume this summer.

At St.Paul Bay, on Red Lake, Aur Resources (TSE) completed a limited drill program on an old gold showing. Results are understood to have been discouraging.

Of considerable geological interest are the preliminary base metal reserves at Trout Bay. The Bay is on Red Lake and in close vicinity to the Cochenour-Willans mine under whose auspices base metal mineralization in the area was first investigated. The larger zone has a preliminary reserve of 113,182 tonnes grading 7.86% zinc, 1.50% copper, 1.24% lead, 58.3 grams silver and 0.24 grams gold. The smaller zone totals 12,498 tonnes at roughly half the grade. The mineralization is of interest because it occurs in gabbro sills and metasediments, a fundamentally different environment from the South Bay base metal belt. There, rhyolites are the favored horizon.

The big item in the area apart from the two operating mines is the Cochenour-Willans operation of the Wilanour partnership. Wilanour Resources (TSE) holds a 30% interest in the partnership with manager TVX Gold (TSE), holding 50%.

The partnership has spent about $10 million over the last three years unwatering the mine, carrying out mapping and drilling and undertaking raise and level development. Bulk samples in excess of 8,200 tonnes have been mill tested and an announcement concerning future developments is expected soon.

Earlier in November, 1989, a preliminary reserve estimate of 1.1 million tonnes grading 8.9 grams gold was announced together with the identification of a number of new mineralized zones.

TVX Gold is the result of the merger of Inco Gold and Consolidated TVX Mining in January. Inco (TSE) has a 62% interest in the new company.