Kidd to resume drilling on Chance claims in July

Drilling on the Timmins, Ont., area property which Kidd Creek Mines holds under option from Chance Mining and Exploration is scheduled to resume in late July.

The $350,000 program will consist of drilling 5-6 holes entailing 12,000 ft of drilling at widely spaced intervals. The program is designed to extend mineralization obtained in holes 13-14 which occur in favorable rhyolites. “We hope that with such a large strike, we will eventually get something,” said President Mike Zurowski, after the annual meeting.

“There’s a lot of room in the area for a significant deposit,”

Mr Zurowski, told The Northern Miner. “The southeast corner of the lot merits further work.”

During 1986, exploration was confined to the south half of Lot 6, concession 6 of the Kidd Twp. property.

According to the annual report, one drill hole (K64-13), was completed in November, 1986, to a depth of 1,342 ft. This hole tested the north segment of the Chance rhyolitic rocks, which Mr Zurowski says are strongly hydrothermally altered and contain anomalous base metal mineralization.

The best mineralized section of massive sulphides, over a width of 0.12 m assayed 0.12% copper, 2.02% zinc, 0.18% lead, 1.03 oz silver and 0.001 oz gold per ton. The zone appears to strike in an east-west direction with a vertical dip.

Since the 1982 agreement which granted Kidd Creek Mines a 10- year option to purchase a number of Chance’ 57 Timmins area claims, about $825,000 has been spent to complete 25,567 ft of surface diamond drilling. Under the agreement, Kidd Creek must either complete 20,000 ft of diamond drilling by Sept 3, 1989, or conduct development work of equivalent value.

If the option has not been exercised, Kidd Creek must make an advance royalty payment of $50,000 to Chance by Sept 3, 1990, and an additional $50,000 by Sept 3, 1991.

However, if the property reaches the commercial production stage before Sept 3, 1992, Chance retains a 10% net profits royalty as defined in ore or concentrate produced from the property, from which payments, if any, referred to earlier will initially be deducted.

With cash on hand totalling $549,731 for the 1987 first quarter, Chance reported earnings of 7 cents per share. That compares with $576,999 and 3 cents respectively during the same period last year. Chance shares were trading recently on the Canadian Over the Counter Automated Trading System (coats) at 65 cents per share.

The company is a 35%-owned subsidiary of Toronto-based Conwest Exploration.