A recent option agreement with Continental Pacific Resources (VSE) sets the stage for Minnova (TSE) to acquire a 60% interest in two polymetallic mineral properties in the Coronation Gulf area of the Northwest Territories.
Continental Pacific has been exploring the Anialik and High Lake volcanic belts adjacent to Coronation Gulf for a number of years, and is the largest owner of mineral claims in the area. So far, though, the company has resisted the temptation to join in the diamond exploration rush gripping Canada’s North.
“We’ll stick with what we have,” said President Charles O’Sullivan, “We feel optimistic there will be concentrates shipped from Coronation Gulf before diamonds.”
The newly optioned properties include the Anialik 1 claim which contains the Run zinc-copper discovery, and the Mona 1, 3 and 6 claims which contain the Rush zinc-copper discovery.
Both discoveries are less than 20 km from the coast. To earn a 60% interest, Minnova must make cash payments of $400,000 and spend $5 million on exploration over three years.
Minnova is already active in the North, and early this year began a work program at the Izok Lake polymetallic deposit 260 km south of Coronation Gulf. Along with major shareholder Metall Mining (TSE), Minnova hopes to develop a zinc-copper mine and to ship mineral concentrates to Coronation Gulf. Feasibility work is continuing at Izok Lake, which currently hosts reserves totalling 13.6 million tonnes grading 14.6% zinc,
1.6% lead, 2.5% copper and 77.7 grams silver per tonne. A further two million tonnes averaging 8% zinc and 2% copper were outlined this past summer in the nearby Inukshuk discovery.
Along with other companies active in the region (including Continental Pacific), Minnova is a member of the Marine Transportation Consortium formed to commission and monitor a feasibility study of shipping concentrate from Coronation Gulf to Europe and Japan.
The governments of Canada and the Northwest Territories are also members of the consortium, along with Echo Bay Mines, Kennecott, Aber Resources, Homestake Mining and BHP-Utah Mines.
Exploration activity south of Coronation Gulf is expected to pick up steam next summer when a number of companies resume exploration programs and field work.
In addition to the programs planned by Minnova on the Run and Rush properties, Continental Pacific intends to explore polymetallic and shear-related gold targets on its other properties in the Coronation Gulf area.
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