Golden Hwy. projects span the spectrum

A land of overburden drills and deep geophysical surveys, the Destor-Porcupine fault east of Matheson, Ont., features gold projects at every stage of development, from early exploration drilling through to preproduction.

At the advanced-drilling stage is the Michaud Twp. project, in which Barrick Gold (ABX-T) is earning an interest from Moneta Porcupine Mines (ME-T). For the current season, 16,000 metres are planned, and, by the end of January, the property had been subjected to just over 5,000 metres.

Drilling this winter concentrated on the Southwest zone and West Extension.

Hole MN-183 intersected a 27.4-metre length grading 2 grams gold per tonne, including 6.6 metres grading 4.3 grams.

Hole MN-182, on a section 75 metres west of MN-183, intersected 35.7 metres grading 2.5 grams, containing four higher-grade intervals. MN-185, on the same section line, intersected 2 metres grading 1.68 grams.

Farther west, MN-184 intersected 9.5 metres grading 3.6 grams and MN-186 intersected 6.2 grams over 3.3 metres.

Barrick is earning a 60% interest in the northern portion of the land package, and a 70% interest in the southern portion. Nufort Resources (NR-T) will retain a 7% net profits interest and a 2% net smelter return royalty.

Underground development is on schedule and under budget at the Glimmer mine in Hislop Twp., 10 km east of Matheson, where 7,000 tonnes of ore are now in stockpiles. Exall Resources (EXL-T), the operator, holds 65.5% of the project, and Glimmer Resources (GME-V), the remainder. Control of Glimmer recently passed to Matachewan Consolidated Mines, which holds 44% of Glimmer shares. Kent has stayed on as a director of Glimmer.

The decline ramp has progressed at an average of 15 metres per day, and the ground has proved to be competent. Exall expects the mine to produce 15,000 tonnes of development ore in March, and the mine could see commercial production as early as July. St Andrew Goldfields (SAS-T) has received the first material from a bulk sample taken at Glimmer, and will start milling development ore, at its Stock Twp. facility, this month.

The recent drill intersection of 227 grams over 1 metre at the Glimmer deposit (T.N.M., Feb. 24/97) has confirmed the belief, held by former Glimmer president George Kent, that additional gold mineralization would be found between the East and West zones.

Holloway

Startup has been slow at the Holloway mine, 55 km east of Matheson. The mine, in which operator Battle Mountain Canada (BMC-T) has an 84.7% interest and Teddy Bear Valley Mines (TBV-T) the remainder, produced 13,128 oz. in the last quarter of 1996. Teething troubles left the mine with a cash operating cost of US$393 per oz.

Battle Mountain hopes to produce 96,000 oz. in 1997, with cash costs pushed down to US$223 per oz. Ore from Holloway is custom-milled next door at the Holt-McDermott mine of Barrick Gold.

Exploration in the Lightning zone, at depth to the west, has intersected 2.9 metres grading 11.6 grams gold, about 600 metres vertically below the deepest previous hole. Battle Mountain plans some additional drilling from surface this year.

About 15 km south of the Holloway project, Abitibi Mining (ABB-V) and Sedex Mining (SDN-V) have finished a second phase of drilling on their Tannahill project. The 1,170-metre program intersected a previously known structure in six of seven holes. The best intersection was a 3.7-metre length grading 7 grams gold, and two other holes cut 5-metre intervals grading 4.8 and 5.2 grams. The structure is open in both directions on strike and has seen only limited testing below 100 metres.

Pangea Goldfields (PGD-T) is still reviewing a feasibility study on its Fenn-Gib gold project in Guibord Twp., about 25 km east of Matheson. A 6.8-metre intersection grading 7.1 grams gold, at a depth of 415 metres, suggests depth potential, and the company is weighing development alternatives.