Juniors step up pace in Newfoundland — Altius, Noveder among companies involved in grassroots programs

While exploration activity may have cooled in Labrador, across the Strait of Belle Isle in Newfoundland many juniors and majors are once again targetting base metal and gold prospects.

What follows is a roundup of some recent grassroots programs: * A 300-metre diamond drilling program is under way at Altius Minerals’ (ALS-A) Lockport property on the province’s north-central coast.

The Lockport volcanogenic massive sulphide (VMS) deposit consists of massive and stringer copper-zinc sulphides in strongly altered mafic and felsic volcanic rocks. Although previous exploration seemed to indicate that the deposit was terminated by faults along strike, new mapping suggests that only minor displacement has occurred and that the host volcanic rocks can be traced 1.7 km along strike. Mapping and prospecting have identified three additional areas of altered and mineralized volcanic rocks where there is no record of previous exploration.

Two holes will test the new geological concepts — the first, along strike to the northeast; the second, along strike to the southwest.

* In south-central Newfoundland, a 2-hole, 200-metre diamond drilling program is about to begin at Buchans River’s (BUV-A) wholly owned Barasway de Cerf property.

Channel sampling of a massive sulphide lens at the property’s Trench Brook prospect returned values of 4.09% zinc, 2.39% lead and 7.39 grams silver per tonne across 2.8 metres, including a 0.8-metre massive sulphide band assaying 10.5% zinc, 6.9% lead and 18.86 grams silver. The mineralized horizon has been traced along strike for 1.8 km, and sporadic mineralization and soil geochemical anomalies occur over 5 km.

Buchans acquired Barasway de Cerf, as well the Granite Lake tungsten-molybdenum-copper-bismuth property, from privately held Newfoundland Mining & Exploration. In return, the vendor received 261,000 shares and 261,000 two-year share purchase warrants from Buchans. The warrants can be exercised at 75 cents in year one and 80 cents in year two. A 2% net smelter interest will be retained by the vendors.

As well, Buchans has granted 80,000 employee stock options exercisable at $1 for two years.

* At Canaco Resources’ (CSE-M) Powderhorn nickel-copper-cobalt project in Newfoundland’s central mineral belt, Falconbridge (FL-T) has entered into an agreement to evaluate the junior’s data.

Canaco completed a magnetic and pulse-electromagnetic survey of the claims and found a rectangular anomaly measuring 1,500 by 1,000 metres. Soon, the company will begin trenching outcrops and near-surface geophysical anomalies.

Petrographic studies of sulphide-bearing drill core from these gabbroic intrusives have confirmed the orthomagmatic nature of the sulphide mineralization. Orthomagmatic rock that bears nickel-pyrrhotite mineralization represents a new metallogenic model for this region; previously the district was assumed to be characterized chiefly by volcanogenic massive sulphides.

Meanwhile, on Newfoundland’s Springdale Peninsula, Canaco intends to explore its four VMS projects.

* Southwest of St. John’s, on the Avalon Peninsula, Fort Knox Gold Resources (FNX-T) has entered into three option agreements on 110 mining claims totalling 2,750 ha.

The company can acquire the properties outright by paying $120,000 over three years. Fort Knox’s interest in the properties is subject to a 3% net smelter return royalty, which can be reduced to 2% or 1% for cash payments of $1 and $2 million, respectively.

The properties contain the recently discovered Santana prospect plus two previously known gold occurrences: Roadcut and Steep Nap. Santana consists of numerous gold-bearing rock fragments 100 metres north of Roadcut. Most of the fragments are altered, vuggy rhyolite with silica, sericite and minor amounts of hematite, pyrite and galena. The Roadcut prospect is a 100-metre-wide exposure of gold-bearing pyroclastic rocks. Steep Nap, situated at the northern end of the properties, consists of gold-bearing quartz-hematite-adularia veins in pyroclastic and hydrothermal breccias.

Fort Knox has found angular boulders containing high-grade gold, and upcoming work will include trenching, mapping, geophysical surveys and diamond drilling.

* At the Cabot copper-cobalt property on the Baie Verte Peninsula, Noveder (NED-M) is preparing to resume drilling while at the same time negotiating with majors interested in earning a stake in the property.

Occurring in a basaltic volcano-sedimentary belt, the Cabot showing consists of two zones of mineralization: a banded iron formation with disseminated pyrite-chalcopyrite-magnetite, and an intense stockwork of pyrite-pyrrhotite-chalcopyrite mineralization in a chloritized matrix. This second zone is interpreted as being an alteration pipe underlying a VMS deposit.

At the nearby Betts Cove property, Noveder drill-tested electromagnetic anomalies, as well as a near-surface gold showing. Also, a sampling program was completed on diamond drill core from past programs.

Noveder’s drilling did not return significant results, though the lithogeochemical sampling program confirmed the extension and strengthening of hydrothermal alteration at depth. The alteration zone, which is 100 metres thick near surface, widens to 200 metres at a depth of 200 metres.

At Noveder’s Tilt Cove property, significant gold values were returned from a reconnaissance survey 1.5 km west of the Tilt Cove mine. The encouraging grades were obtained in an ultramafic sequence containing hematite and disseminated pyrite. This area will be the focus of stripping, trenching and drilling.