Metall exploring N.W.T. greenstone belt

It scarcely needs saying that diamond excitement looms large in the Northwest Territories, but base metals and gold are also moving into the picture.

About 400 km southwest of Coronation Gulf lies one of Canada’s few remaining unexploited greenstone belts. The 1975 discovery of Izok Lake’s copper-zinc deposits rekindled interest in the region, and Metall Mining’s (TSE) acquisition of the property augurs well for the future. A feasibility study is expected by year-end, says David Watkins, Metall’s vice-president of projects and acquisitions. The company’s $10-million budget for exploring in the Territories includes engineering and metallurgical studies as well as continued detail-drilling on the Izok Lake and satellite Inukshuk deposit. The feasibility will incorporate the cost of shipping and of constructing port facilities at Coronation Gulf. Operations will be sea-, rather than land-supported.

Reserves in the probable category were previously reported (T.N.M., Sept. 28/92) as being 12.3 million tonnes grading 14.6% zinc, 2.5% copper, 1.6% lead and 77.7 grams silver per tonne. An additional two million tons grading 8% zinc and 2% copper have been attributed to the newly discovered Inukshuk deposit, 400 metres distant.

Between 15 million and 20 million tonnes are needed to make the project viable, said President Klaus Zeitler at last year’s annual meeting. How much closer Metall will be to this threshold should be known at year-end. The company has placed on the back burner its other wholly owned properties in the region, pending resolution of reserves at Izok. Included are the Gondor and Hood River (Nos. 10 and 41) deposits, 30 km east and 80 km north of Izok Lake, respectively.

Hood River contains 2.1 million tonnes grading 2.9% copper, 3.9% zinc, 22.3 grams silver per tonne, with minor gold values. The greater part of the tonnage is in the No. 10 deposit, which grades 4.1% copper with comparable values in associated metals.

Grade at Gondor appears to be lower. Reserves are estimated to be 7.3 million tonnes at 0.2% copper, 4.8% zinc and 46 grams silver per tonne. Further north, at the Coronation Gulf end of the belt, Metall has optioned the Rush and Run properties from Continental Pacific Resources (VSE). Assays from the first hole returned 73.8 ft. grading 0.91% copper, 0.24% zinc, 0.01% lead and seven grams silver; gold assays are pending. This hole is interpreted to be in a copper stringer zone next to a possible massive sulphide deposit.

Continental Pacific, an equity-financed junior, holds more than 500 sq. km of land in a cluster of separate claim groups at the northern extremity of the Anialik-High Lake greenstone belt. Bounded on the north by Coronation Gulf, they stretch 65 km south. At their southern end, they are near Kennecott’s High Lake deposit. Prior to this season’s drilling, reserves in two zones there were estimated at 7.7 million tonnes averaging 3.9% copper, 2.9% zinc, plus minor values of gold and silver.

Continental has carried out widespread airborne and land surveys identifying 21 anomalies to date. In 1992, it drilled several holes on the Rush and Run claim groups (they are 25 km apart) and intersected ore-grade, zinc-copper values over 1.5-3.5-metre widths.

Proven base metal mineralization, extensive alteration and favorable geology attracted the attention of Metall and the two properties were optioned in October of last year.

Metall carried out down-the-hole geophysics earlier this year, followed by diamond drilling which intersected the recently announced values. There are several anomalies interpreted on both properties.

Metall can earn a 60% interest in the two properties by spending $5 million on exploration and development over the next three years. It must also pay Continental $400,000 cash during the same period.

— The author is a freelance writer residing in Victoria, B.C.