Mishibishu area mines are all active

Although modern exploration interest in the Mishibishu area came about as a sort of `overflow’ from the Hemlo gold rush in the early 1980s, it was only until recent discoveries that major companies have focused their attention on this camp.

Located 30 miles west of Wawa, Ont., the primary exploration catalyst has been the Magnacon project, operated by Muscocho Explorations (TSE) for partners Windarra Minerals (VSE) and Flanagan, McAdam Resources (TSE).

The partnership is building a $30-million mine which is scheduled to begin production at a rate of 600 tons per day by the first quarter of 1989.

Magnacon’s success has been followed by discoveries immediately west of the joint venture property and to the south. During the year, partners Granges Exploration (TSE) and MacMillan Energy (VSE) have outlined geological reserves of 1.1 million tons grading 0.17 oz gold per ton on their equally-shared Mishi project.

The Mishi partners are hoping to repeat the results received underground at Magnacon which showed grade to exceed drill hole grades by more than 70%.

At surface, the Main zone has been stripped for 900 ft. Displaying a width of 16.5 ft, the zone has open pit mining potential, Granges says. Surface drilling of five other zones is planned this year.

At the Eagle River property, nine miles south of Magnacon, partners Hemlo Gold Mines (TSE) and Central Crude (VSE), are performing a large exploration program which has defined a sizeable gold resource. Hemlo, which is controlled by Noranda Inc (TSE), is focusing its attention on the No 8 zone, which has been tested for 6,000 ft along strike and to a depth of 1,000 ft.

This year, 120 holes have been completed. Estimated reserves total 960,000 tons grading 0.27 oz gold. Although metallurgy appears good, a pronounced nugget effect makes reserve calculations difficult, Hemlo says.

The discovery has had immense impact on the share price of Central Crude, which has soared to a high of $10 from a low of 30 cents .

Strike extensions of the favorable structure on the Eagle River claims are held by companies in the Bert Applegath folds immediately to the west. Applegath Group companies include Villeneuve Resources (VSE), Tundra Gold Mines (VSE), Oneida Resources (VSE) and Alotta Resources (VSE).

The most promising results from their exploration efforts are coming from Tundra’s Kabenung project, five miles north of the Magnacon mine.

Gold values have been assayed from a 1,200-ft wide shear zone. Values up to 0.41 oz gold from grab samples have been taken from a 20-ft wide quartz vein stockwork. This year alone, the Applegath Group companies have added almost 50,000 acres of ground to their already large land position in Mishibishu.

Other juniors active in the camp include San Paulo Explorations (ASE), Joutel Resources (TSE), HSK Minerals (TSE) and Dominion Explorers (TSE). No significant results have come from ground held by these companies to date.