Jonpol annual meeting

A little more than a year after drilling its discovery hole on the Newfield property, Jonpol Explorations (TSE) has blocked out a drill- indicated reserve of 1.3 million tons grading 0.231 oz gold per ton, president John Pollock told shareholders at the company’s annual meeting.

Located in Garrison Twp., Ont., the Newfield property will also be the subject of an agreement between Jonpol and Lac Minerals (TSE). The deal, which was announced last July, is expected to be formally signed shortly, Pollock said.

The reserve estimate, which will require considerable work to upgrade to the proven category, is based on more than 132,000 ft of diamond drilling, Jonpol’s consulting geologist said. “These reserves will be expanded by additional drilling,” Pollack added.

Confined to a depth of 1,000 ft, potential remains to add tons at depth. This assessment is based on several deep holes which intersected the wide mafic volcanic unit, which hosts the gold mineralized zone, at 1,900 ft. A wedge from hole 99 intersected 9 ft grading 0.183 oz gold. The section is within a much wider 88-ft zone which is anomalous in gold.

The Newfield reserves do not include drill-indicated reserves of 106,000 tons grading 0.161 oz gold outlined on the adjacent Garrcon property, immediately to the east. A second zone on the Garrcon hosts another 81,000 tons grading 0.26 oz gold per ton, the company says. Cominco Ltd (TSE) retains a 51% interest in these claims.

Under the terms of the Lac deal, the major will earn a 50% interest in all of Jonpol’s properties in Garrison Twp by paying the company and T & H Resources (TSE), Jonpol’s partner on the Newfield ground, a total of $2.5 million and spending $5 million on exploration. Lac has said that its Macassa mill, in Kirkland Lake, would be used to process Newfield ore in the event that the property was placed in production (N.M., July 11/88).

At 500 tons per day, Pollock estimates the property could initially yield in excess of 30,000 oz of gold per year. In an obvious bout of exuberance, Pollock went on to say that “this property will be to Jonpol what the Horne mine was to Noranda.”