Gold is the driving force in Newfoundland exploration

Gold continues to be the main driving force behind record levels of exploration activity being seen in Newfoundland this year.

Several new and exciting gold plays have been stimulating the province’s exploration levels, which continue brisk according to indicators such as claim staking, project expenditures and diamond drilling statistics.

Rising interest in base metals, for which Newfoundland has a long and well documented history of production and potential, is also contributing to the province’s high levels of exploration activity. Exploration expenditures, which totalled $28 million last year, are forecast to reach $35 million this year, an increase of almost 25%. Diamond drilling activity is also expected to be at least 25% higher than the record level of 81,000 m drilled last year. Claim staking statistics for the first three quarters of this year stand at 19,178 new claims and 61,878 claims in good standing.

Hope Brook Gold (TSE) is on schedule with its mine construction and development work on the south coast. Last month, the company successfully commissioned its 3,000-tonnes-per-day mill by pouring the first bullion from the mill circuits. Earlier this year, the company announced the discovery of a new gold zone located 1,000 m west of the mine. Some of the better intersections, encountered at a depth of about 400 m, included 5.6 m grading 6.98 g gold per tonne (0.2 oz gold per ton) and 11 m grading 4.76 g (0.138 oz).

Dolphin Explorations (VSE) has a major exploration program under way on its Cape Ray gold property in southwestern Newfoundland. The program will see $5 million spent on exploration this year, including the construction of a 20-km gravel access road. The company hopes to be in a position to carry out a feasibility study by year end. The Cape Ray project is located about 60 km from the producing Hope Brook gold mine. Dolphin’s work to date has outlined reserves of one million tonnes grading 9.6 g (0.28 oz) gold per tonne.

Drilling has been steady throughout the year, using 5-10 machines, on Noranda Explorations’ (TSE) Duck Pond base metal deposit located southwest of Gander. Geological reserves there stand at over four million tonnes of 6.62% zinc, 3.53% copper, 1.05% lead, 67.39 g silver and 1.02 g gold per tonne.

The Baie Verte Peninsula is seeing plenty of exploration activity and several properties there have yielded interesting results. Noranda and joint venture partner International Impala Resources (VSE) recently announced some interesting channel sampling and diamond drill results from their Stoger Tight showings.

The first drilling from Varna Gold’s (ASE) Pine Cove property on the Baie Verte Peninsula has encountered three separate mineralized zones. The highlight was an intersection of 8.12 m grading 11.1 g (0.325 oz) gold per ton in pyritized chert-breccia.

Another interesting intersection was reported from a new discovery by Bitech Energy Resources (ASE). The company reported a 7-m (23-ft) channel sample grading 15.4 g (0.45 oz) gold per tonne from its Betts Cove area property on the Baie Verte Peninsula.

On the Rambler properties in the Baie Verte area, $3.84 million will be spent on exploration over the next 12 months. The Rambler joint venture group is comprised of Teck Corp. (TSE), Petromet Resources (TSE), and Newfoundland Exploration Co.

Interest in Newfoundland’s industrial mineral potential is also on the rise. The growth of this sector is aided by the province’s strategic location and the proximity of a variety of commodities to tidewater.

Another boost to the mining industry is Newfoundland’s Mineral Industry Assistance Program (MIAP) which was approved in August. It will provide assistance to the industry for market and feasibility studies, infrastructure for non-metallic mineral operations, and grants to prospectors.