Matheson area Eastern Canada’s exploration hotspot

At a time when precious metal exploration is all but dead in much of Eastern Canada, it is heartening to see the gold bulls still charging along Ontario’s portion of the Porcupine-Destor fault. Marking just about every turnoff from the infamous “Golden Highway” in the Matheson area east of here is a colorful project sign, a reminder of the wealth still to be found within this historically prolific fault zone.

Following an exploration model developed in the early 1980s, Noranda exploration, a unit of Noranda (TSE), has become the major player in the area. With a field office in Timmins, the company has formed joint ventures with many of principal landholders along the fault, including Freewest Resources (TSE), Canamax Resources (TSE) and Glimmer Resources (TSE).

“We’ve got about 60% of the fault area tied up at this point,” said Ian Atkinson, regional exploration manager for Noranda. “We’re looking for gold deposits on ultramafic-mafic contacts — another Lightning zone.”

Probably the most striking example of Noranda’s success to date is the Holloway project, where the joint venture of Noranda and Freewest Resources (TSE) has outlined a preliminary reserve of 4.7 million tons grading 0.24 oz. per ton within the now-famous Lightning zone. Although recent results indicate the zone may be tapering off down-plunge, Noranda says the host rock remains intact at depth and to the east. Fortunately for Teddy Bear Valley Mines (CDN), a portion of the Lightning zone dips steeply on to its adjacent property, where Noranda and partners Freewest and Newmont Mining are earning a 70% interest. But with most holes collared on five main Freewest claims, information from the Teddy Bear property remains scanty. According to Teddy Bear President Andrew Chatter, incorrect assumptions about the plunge of the zone are responsible for the recent poor results. He believes that the gold zone is plunging much more steeply than Noranda’s estimates, perhaps at 70-80 degrees, and could be picked up with deeper drilling.

But any arguments over the geometry of the orebody will soon be resolved, assuming Noranda decides to move underground. Within the next few weeks, the major will release a final feasibility study containing recommendations on underground exploration and bulk sampling.

A few miles to the east, Noranda is launching a drill program on the Golden Highway property held by Canamax Resources (TSE). Designed to follow up encouraging results from last year’s 37 holes, including an 8-ft. length grading 0.21 oz. gold per ton, the program will test the same stratigraphy that plays host to the Lightning zone.

Noranda is earning a 50% interest in the property by spending $4.5 million over three years and making cash payments of $1.65 million. This year, the company expects to spend about $1 million on the Canamax ground.

A completely separate deposit is taking shape at the joint venture property held 60% by Noranda and 40% by Glimmer Resources (TSE), just outside of Matheson, Ont. By the end of May, Noranda had completed another seven holes at Glimmer. Although the results suggest that downdip extensions of the No. 2 may not be as extensive as originally thought, several targets remain to be tested.

The Beatty-Hislop property is estimated to contain reserves of 1.08 million tons grading 0.34 oz. in two main zones.

Just about the only regional drilling project Noranda does not have a hand in is the joint venture of Teck (TSE) and Perrex Resources (ASE)on the south side of the Porcupine-Destor fault. This month, Teck is expected to drill at least nine geophysical anomalies in an area covered by deep overburden. Details of the joint venture agreement remain confidential.

“This camp has yet to open up,” says Perrex President Alex Perron, a seasoned prospector. Glancing down at the ground his grandfather staked in 1928, he adds that some of the strongest IP anomalies in the Harker-Holloway camp remain to be tested.

Judging by the size of his landholding in the area, Perron believes in what he says. Along with two associated companies, Alberta Gold Exploration (ASE) and Gwen Resources (ASE), Perrex holds 1,500 claims and 2,200 miles of cut lines running just south of the Porcupine-Destor.

Perron said more drilling will be in store if his brother and associate, John, has any luck in Thailand, where he is busy rounding up buyers for the family’s ginseng farm.