Kinross expands Wheaton River’s Goose Lake

An ongoing 40-hole, 11,000-metre drilling program by Kinross Gold (K-T) at the George Lake project in Nunavut is significantly extending the project’s Goose Lake deposit. The property is held by Wheaton River Minerals (WRM-T).

Kinross’s efforts are aimed at boosting Goose Lake’s known tonnage, estimated in 1997 to be 1.6 million tonnes grading 9.53 grams gold per tonne in the indicated category and 942,000 tonnes at 9.1 grams gold in the inferred category.

With results from the first 10 holes in hand, Wheaton River says the drilling indicates “not only that the tonnage at Goose Lake will increase significantly, but [that] the average grade will likely improve as well.”

Three holes extended Goose Lake to the south:

– hole 7 intersected 17 metres of 14.9 grams gold (in the Main zone);

– hole 8 cut 4.1 metres of 10.4 grams gold (West zone), 4 metres of 8.5 grams gold (Main) and 9.3 metres of 13.5 grams gold (Main); and

– hole 10 cut 3 metres of 10.8 grams gold (East zone).

All the intercepts are within 150 metres from surface and roughly represent true width.

Six holes tested the northern extension of the deposit, the highlights being: 5.2 metres (from 232 metres) of 15.0 grams gold (Main) and 6.2 metres of 18.1 grams gold (East) in hole 1; and 2 metres (from 234 metres) of 17.1 grams gold (Main) and 6.4 metres of 29.6 grams gold (East) in hole 5.

Hole 9 had two successes: first, it intercepted the East zone in the deposit’s northern portion at 280 metres below surface (the deepest intersection yet at Goose Lake); and second, it cut 5.9 metres of 11.2 grams gold near the collar of the hole in what may be a new zone.

Hole 4 was drilled down the axial plane of the deposit’s fold nose in order to intersect portions of the Main and East zones at an oblique angle. The hole returned five intersections ranging in width from 2.9 to 8.9 metres and grading 14.4-19.3 grams gold.

Total resources at George Lake are estimated at 6.5 million tonnes grading 9.76 grams gold for 2 million contained ounces gold, but Kinross is hoping it can add another million ounces to the inventory.

The major can earn a 70% interest in the project by spending $20 million on exploration before Nov. 30, 2004, $2 million of which must be spent by Nov. 30, 2000. No interest will be earned by Kinross unless the entire $20 million is spent.

The George Lake project is situated 70 km south of Bathurst Inlet. It was acquired earlier this year by Wheaton through its merger with affiliate Kit Resources.