GMD, New Discovery explore Yellowknife play

Hoping to take advantage of the developing infrastructure near Nicholas Lake, N.W.T., partners GMD Resource (VSE) and privately owned New Discovery Mines are gearing up to begin an exploration program at their Discovery mine gold property.

Situated 100 km north of Yellowknife, N.W.T, the past-producing Discovery mine is adjacent to Athabaska Gold Resources’ (VSE) Nicholas Lake project, which contains 720,000 tons grading 0.47 oz. per ton.

Between 1949 and 1969, more than 1 million oz. were recovered from slightly more than 1 million tons of ore. Most of this was mined from the Main zone, which is a horseshoe-shaped, near-continuous quartz vein. Geologically inferred reserves in the zone are estimated at 300,000 tons grading 0.3 to 0.6 oz.

An additional drill-indicated resource of 275,000 tons grading 0.4 oz. has been outlined in the Ormsby zone, situated 9,200 ft. southwest of the Main zone.

David Webb, vice-president of exploration for New Discovery Mines, tells The Northern Miner that both mineralized zones are thought to be controlled by the same shear. “We have over 8,000 ft. of mineralized shear zone, separated by 6,000 ft. of highly prospective ground,” says Webb, who believes that the potential for additional discoveries is quite good, especially considering the lack of outcrop.

The partners will initially focus their attention on the Ormsby zone. “We plan on going underground on the Ormsby zone and conducting further diamond drilling on the Main zone, Ormsby zone and another shear on the property,” Webb explains.

He adds that all the necessary permits are in place and that site preparation for the decline into the Ormsby zone should begin by early February. GMD can earn a half interest in the property by spending $1 million on exploration over three years.