Hot intercept puts spotlight on Casa Berardi

Shades of the early 1980s! The Casa Berardi area of northwestern Quebec is again the focus of gold- exploration attention following the release of a single drill hole result. Project partners Inco (TSE), Cambior (TSE) and Societe d’Exploration Miniere Vior (ME) reported an intersection of 59.3 ft. of 0.23 oz. gold per ton in Douay Twp., about eight miles northeast of Joutel, Que.

Within that core length are smaller intercepts of 17.4 ft. grading 0.35 oz. and 9 ft. of 0.39 oz.

The announcement sparked stock market activity in a number of companies which have staked or own claims in that part of the province.

The only gold-mining operation in the Casa Berardi area is the Golden Pond project of Inco and Golden Knight Resources (TSE), which sits several townships west of the Douay project. A production decision for a second mine, the Estrades, has been announced by Breakwater Resources (TSE).

On the fringes of the Casa Berardi area is the Telbel gold mine of Agnico-Eagle Mines (TSE). The project is in the western half of Joutel Twp., which bounds Douay Twp. to the west.

The Inco-Vior-Cambior Douay property, about 18 square miles in size, has been drilled previously in other areas, particularly in the centre portion where a deposit containing a preliminary reserve estimate of 557,000 tons averaging 0.23 oz. has been uncovered.

This latest intersection occurred about three miles west of the above- mentioned deposit. Vior President Claude St-Jacques said this western area had not been explored before “because it’s a very big property.” A low magnetic anomaly determined the drill target site.

St-Jacques said the mineralized interval is related to highly silicified, hematized and sericitized iron- rich sediments containing up to 10% finely disseminated pyrite.

The intersection was taken at a depth of 336.7-396 ft. The next hole in the same area, already under way, will be to 600 ft., St. Jacques said.

Inco, the operator, has a 42% interest in the project, Vior a 37% interest and Cambior a 21% interest. St-Jacques said Vior initially earned a 35% interest by spending $2.5 million on exploration work. Vior gained a further 2% interest when Cambior declined to participate in the last exploration campaign and saw its share diluted.

The Casa Berardi area is known for its overburden, which can add considerably to a project’s overall cost. St-Jacques said the overburden at the Douay Twp. drill site is about 100 ft. deep. On the positive side, he said a roadway and power line traverse the property.

By closing on the Montreal Exchange on the day of the announcement, Vior had traded more than 1.16 million shares and its price had jumped 77 cents to $1.38. On the Toronto exchange, Inco, in the dumps lately because of falling nickel prices, traded more than one million shares and closed up 63 cents to $27 5/8. Cambior, subject of a recent takeover rumor, gained 13 cents to $19 on about 171,000 shares.

One junior which has profited from the excitement is Joutel Resources (TSE), which traded almost 1.8 million shares and climbed 4 cents to 34 cents . Joutel’s claims lie about seven miles northwest of the Douay property, bordering another piece of property belonging to Vior. Inco approached Joutel management recently regarding a possible property deal.

Other juniors with property positions in the area include Golden Rule Resources (TSE) and Northern Abitibi Mining (ASE), which jointly own property lying immediately north of the Inco-Vior-Cambior claims. Beaufield Resources (TSE), with adjacent claims to the southwest, announced an option deal with Ressources Orient (ME) whereby Orient may earn a 50% interest in the Beaufield claims by spending $1 million on exploration work within three years.