Gunnar, Mill City earning option in Tyranite mine

A joint-venture agreement has been entered into by Gunnar Gold and Mill City Gold with Tyranex Gold on the Tyranite Mines’ gold property in Tyrrell and Knight Twps. in the Matachewan area of northern Ontario.

Gunnar and Mill City may earn a 50% interest in Tyranex’s option to purchase the Tyranite mine by spending up to $5 million on exploration, development and feasibility studies by Aug 15, 1990. On completion of these expenditures, the companies may form a joint- venture partnership to finance the mine to full commercial production.

Gunnar President James Brown reports that two strong north-south trending shear zones cut the Archean Milly Creek pluton and an associated mafic metavolcanic and metasedimentary greenstone sequence at the Tyranite mine. The eastern shear is 5,000 ft long and is known as the Main shear. The western shear is 2,500 ft in length and is known as the Duggan shear.

The mine is a former producer, between 1939 and 1942, with most of the ore mined between the surface and the 825-ft level. It is estimated 276,000 tons of drill- indicated ore remain within the main South Lens, between the surface and the 825-ft level, with an additional 250,000 tons lying between the 825-ft and 1,425-ft levels, Mr Brown reports. “At an ore grade of 0.2 oz gold per ton, this represents an in-place drill- indicated reserve of 105,200 oz gold,” he said.

An evaluation program of geological mapping, geophysical surveys, bulk sampling and diamond drilling, costing an estimated $605,100, is planned. It is hoped the mine can be placed back into production within two years. Under the terms of the option agreement, Gunnar and Mill City must spend $200,000 by Aug 15 of this year.