LAC still seeks pay dirt on Queenston’s ground

LAC (TSE) recently intersected low-grade gold mineralization across narrow widths while drifting on the 4,750 ft. level beneath Queenston Mining’s (TSE) Kirkland Lake West claims near Kirkland Lake, Ont. But according to Gerald Gauthier, LAC’s senior vice-president of operations, drift crews haven’t encountered anything that could be considered either economic or minable.

As the Kirkland West claims are immediately adjacent to LAC’s Macassa gold mine, Queenston shareholders have been waiting anxiously for LAC to hit pay dirt. But speculation that LAC has made an “important discovery” is greatly exaggerated, Gauthier says.

“We did get a smell of something but it is way too early to say anything yet,” said Gauthier who was referring to the fact that grades (0.1 oz. gold per ton) and widths encountered so far are uneconomic.

Under a 2-year-old agreement, LAC is conducting 5,000 ft. of drifting and 15,000 ft. of drilling on Queenston’s Kirkland West claims. The exploration program is targeting a geological structure known as the Kirkland Lake Main Break which is known to extend westward from the Macassa property onto Queenston ground for at least 6,000 ft. horizontally.

Since the Main Break (also known as the 04) has already given rise to 23 million oz. of gold production, Queenston Chairman Hugh Harbinson thinks it is reasonable to expect that LAC will find an economic gold deposit on his company’s claims.

“It is only a matter of time before LAC comes up with something significant,” said Harbinson, who also concedes that LAC may not find anything economic at all.

To find just how much progress drift crews are making, Harbinson and Executive Vice-President Charlie Page took the trip down Macassa’s 7,000-ft No. 3 shaft to the 4,750 ft. level, Jan. 17.

While LAC is currently drifting in the 04 system on 4,750, the company has also worked on the 5,875 and 6,450 levels as well. In a recent interview with The Northern Miner, Gauthier said he expects the development work to be completed by the end of this year.

“At that point, we will step back and reassess what we have done so far,” he said.

The joint venture agreement gives Queenston 35% and LAC 65% of the first 400,000 oz. gold produced from the Kirkland West claims, after which all production will be shared equally by the two companies.