Harker-Holloway area continues to draw exploration activity

A spate of new gold discoveries made last year and construction of a new mine continue to stimulate a record amount of exploration in the Harker-Holloway area extending for 35 miles from Matheson, Ont., in the west, to the Quebec border in the east.

Activity, which began increasing four years ago following the announcement of a gold discovery by Camflo Mines, continues at a healthy clip — primarily as a result of flow-through financings. In the area from Hislop Twp. in the west to Marriott Twp. in the east, approximately $5.6 million was spent on exploration programs in 1986. A similar sum is expected in 1987, Gary Grabowski, a resource geologist with the provincial Ministry of Northern Development and Mines in Kirkland Lake, told The Northern Miner.

Another indicator of the increased exploration activity in this region is the ratio of man days of assessment divided by the number of active claims in the area. “Before 1983, that ratio was usually below 20,” Grabowski says “However, after 1983 it has moved well above 30.” This, Grabowski explains, suggests that prospectors are doing more deals, and with the ready cash, they can perform the assessment work needed to keep claims in good standing. Combined with the availability of flow-through dollars and junior companies looking for good properties, this combination has resulted in a high level of activity.

The Camflo gold discovery made in 1983, is on the verge of production today. Located in Holloway Twp., just a short distance south of Highway 101, the mine is controlled by American Barrick Resources, which merged with Camflo several years ago. Named the Holt-McDermott mine after Barrick’s well- known and respected former vice- president exploration, M. E. Holt, the mine hosts reserves of three million tons grading 0.18 oz gold per ton.

Despite a few start-up problems encountered during underground development, “we expect to start running material through the mill by May,” John Melville, Barrick’s vice-president corporate development told The Northern Miner. A head frame, hoist and all surface infrastructure is in place. The mine is fully staffed and mill staff is still being assembled, Melville added. “There is still a fair amount of development stoping in progress. With production slated for the second quarter, Melville says the mill capacity of 1,500 tons per day will be reached within three months.

Underground work suggests grades will be lower than estimated from surface drilling, but tonnages appear much larger. “We’ve only encountered a few isolated problems, nothing serious.” Work, which was initially behind schedule, is now back on track, Melville explained. The mine is expected to produce about 100,000 oz of gold per year. The association of gold mineralization at the Holt-McDermott mine with sub-parallel splays off the Destor Porcupine fault, which strikes across the entire area, is the principal target for exploration in the area. The other two gold deposits which are intimately associated with Barrick’s deposit, both spatially and lithologically, are Canamax Resource’s Mattawasaga deposit to the east and Lenora Exploration’s Worvest option to the west of the Holt mine. The Mattawasaga is believed to represent the faulted extension of the Holt deposit to the east. Reserves total one million tons grading 0.1 oz. Worvest reserves

At the Worvest property, which Barrick controls via a 65% interest, strong drill results completed last year have added to the reserve base of one million tons grading 0.134 oz. Barrick has offered to purchase Lenora’s 35% stake, but no formal terms have been agreed to. All three deposits, the Worvest, Holt- McDermott and Mattawasaga, are essentially part of one large mineralized system.

Canamax Resources has been active in the area for more than five years. Last year, a decline ramp was driven on the East zone deposit in Holloway Twp. Reserves total 576,400 tons grading 0.216 oz gold per ton. About 7,000 tons of rock were mined and shipped for test milling.

The company has also optioned another propery further to the southwest. The 132-claim property, held by Glimmer Resources, will be explored by Canamax this year. Work will follow up several encouraging surface gold showings which were discovered by Glimmer’s exploration staff. Garrison extremely busy

Considerable news continues to come from Garrison Twp., to the west. Work by several junior and senior companies has resulted in new discoveries which have sparked a surge of activity here. One of the most notable discoveries was that made by partners Noranda Exploration and Destiny Resources in Garrison and Michaud twps. Destiny is controlled by Murray Pezim, the ebullient Vancouver stock promoter.

Work by Noranda intersected 31.2 ft grading 0.272 oz from the hangingwall of an iron formation unit. A second hole intersected 9.9 ft assaying 0.42 oz. The second hole was drilled through a section of the Destor Porcupine fault.

The Destiny results come as welcome news to Moneta Porcupine Mines which has been busy in Michaud Twp. for several years. Exploration work has identified two gold mineralized zones. The first is associated with the fault — similar to that at the nearby Destiny discovery to the east — and the second is 3,000 ft to the south. The best intersections include 0.6 oz across 5 ft and 0.11 oz across 29 ft. Moneta has also optioned the Nahanni Mines property, which ties on to the southwest.

Partners The Coniagas Mines and Garrison Creek Consolidated Mines, a Falconbridge Ltd. affiliate, are re-evaluating the Ludgate property, also in Michaud Twp. Located within a syenitic intrusive, the style of gold mineralization differs from the other fault-associated showings and deposits in the area. Previous work has outlined one million tons grading 0.09 oz. The property has open pit mining potential.

Considerable investor interest is also being directed toward the T & H Resources (40%), Jonpol Explorations (40%) and Coastoro Resources (20%) gold discovery made in Garrison Twp. The ground has yielded some spectacular results — probably the best the camp has seen. Hole 30 intersected 46 ft grading 0.95 oz. The true width was about 20 ft. Another hole cut two zones, which returned a rich 7-ft section assaying 1.05 oz. Garrcon high grade

Immediately to the west, Jonpol (49%) and Cominco Inc. (51%) control the Garrcon property. Based on encouraging results, the partners are considering driving a decline ramp this year. The underground program will examine a strongly altered shear zone hosting gold-bearing quartz stringers and sulphides. Drill results include 24.7 ft grading 0.44 oz and 36.9 ft assaying 0.3 oz.

The third property in Jonpol’s portfolio is immediately west of the Garrcon. Optioned from Newfield Mines by Jonpol’s affiliate, T & H, the property protects the extension of the Destor Porcupine fault zone which strikes east-west across the Garrcon and Coastoro properties. Jonpol has also made an offer to purchase all the outstanding Newfield Mines shares on a share-for- share basis.

Others busy in this active Ontario township, are Lac Minerals, Kerr Addison Mines, Silverside Resources and Proteus Resources, a Silverside affiliate. Partners Silverside, Lac and Proteus are exploring a 106- claim property in Garrison and Thackeray twps. Lac can earn a 50% interest with Proteus holding 12.5% and Silverside the remainder. Previous work has outlined 275,000 tons grading 0.17 oz, part of which is available for open pit mining.

Other large land owners in the area include Perrex Resources, which has an option with Lac on more than 30 claims spread from Harker to Elliot twps. Card Lake Resources has also drilled several promising holes near the Destor Porcupine fault, west of the Holt- McDermott mine.