New discoveries make Mishibishu Ontario’s hot spot

The Mishibishu gold belt is a 28-mile-long stretch of volcanic rock or “greenstones” which extend eastward from Lake Superior, about 30 miles west of Wawa, Ont.

“If you looked at a map of the Mishibishu area five years ago, you’d see only a few gold showings, but now there are showings from one end of the belt to the other,” said John Londry, district geologist for Noranda Exploration.

The latest gold showing, found this summer on the Pukaskwa River property by the team of Noranda Exploration and Hemlo Gold Mines (TSE), is still being evaluated, but early indications suggest it could be quite significant.

“We haven’t got any tonnage on the Pukaskwa River prospect yet, but it’s looking like an interesting showing,” said Londry.

Hemlo Gold, the largest claimholder in the Mishibishu area, is earning a 51% interest in that 274-claim property from Vancouver- based Mishibishu Gold Corp. (VSE). Hemlo Gold will spend $5 million exploring the Pukaskwa River property as part of major work program currently under way.

One of this season’s bright spots in the Mishibishu area was the official opening of the new 600- ton-per-day Magnacon mine by partners Flanagan McAdam Resources (TSE), Muscocho Explorations (TSE) and Windarra Minerals (TSE).

Officially opened in July, the Magnacon mine became the camp’s first gold producer, and Muscocho Explorations (TSE) continues to conduct aggressive surface exploration programs over its other ground in the area.

Nearby, partners Granges Exploration (TSE) and MacMillan Gold (TSE) are on the brink of deciding whether to go underground on their well-advanced Mishi gold project, where a new geological reserve calculation was completed recently. Open pit reserves currently stand at 751,000 tons grading 0.125 oz gold per ton, while underground reserves were re-calculated to 565,000 tons grading 0.221 oz.

In September, Granges President Mike Muzylowski stepped down from that company’s board, along with chief financial officer, Doug McRae. Both Muzylowski and McRae had been with Granges since 1983 when it was incorporated.

Granges says negotiations are currently under way with Muscocho, operator of the Magnacon mine, to test mill a 6,000-tonne bulk sample from the adjoining Mishi project. A previous composite bulk sample comprising drill core and surface material showed the mineralization is amenable to cyanidation, with gold recovery in excess of 90% using a combined gravity/ cyanidation circuit.

Farther south in the Mishibishu gold belt, 60/40 joint venture partners Hemlo Gold and Central Crude (TSE) are on target with a $7.75- million exploration program, including underground work, on their Eagle River project. That discovery, which occurs in a granodiorite intrusive cut by a deformation zone, had a catalytic effect on exploration activity in the entire Mishibishu camp.

“The Eagle River discovery re- emphasized the importance of deformation zones within greenstone belts,” said Wawa resident geologist Delio Tortosa. “To date, four deformation zones have been identified in the Mishibishu Lake area.”

The importance of the deformation structures is also echoed by Noranda’s John Londry who said, “it’s along these breaks that we and other companies are finding most of the gold deposits.”

A full-scale feasibility study, currently under way on the Eagle River property, could “fast-track” that 1.77 million ton deposit towards an early production decision. With an uncut grade of 0.51 oz gold per ton, the mineralization in the deposit has attractive mine-making characteristics. Else where on the 331- claim property, at least four other mineralized zones containing visible gold are being drill tested.

Working on their recent discovery, situated some 12 miles further west in the belt and accessible only by helicopter, are partners Hemlo Gold and Mishibishu Gold Corp. (VSE). The latter company resulted from an amalgamation of three Vancouver juniors, Mishibishu Resources, Exmar Resources and Caribbean Resources. Hemlo Gold has an option to earn a 51%-interest in the 274-claim Pukaskwa River property by spending $5 million on exploration over four years. An aggressive program of trenching, sampling and diamond drilling is under way. Preliminary results from surface sampling yielded high grade values up to 1.20 oz gold per ton. Results from the first 25 samples taken along a 1,150-ft strike length averaged 0.48 oz across 3.8 ft. The Pukaskwa River find represents yet another significant discovery which has pin-pointed the growing potential of deformation zones within the Mishibishu greenstone belt.

Access to some of the more remote exploration sites in the belt is possible only by helicopter, making drill programs a costly venture for small companies working the area. It can cost up to $650 per hour to hire a helicopter, since most of the lakes are too small to permit access by fixed-wing aircraft, which are generally cheaper to use. Drilling costs range typically from $55- $60 per metre, according to one company.

Lower levels of exploration activity are being reported this season by the Applegath group of companies, including Allota Resources (VSE), Oneida Resources(VSE), Tundra Gold (VSE), New Beginnings, and Villeneuve Resources (VSE), which control some 1,690 claims in the Mishibishu belt.

Prospecting on Oneida’s Maple Lake property has located several areas with gold mineralization, the most important of which is in a shear zone containing values of up to 0.45 oz gold over narrow 2-ft widths. Grab samples taken this year from the Pete vein assayed from 0.04 to 1.65 oz gold, Oneida reported.

In October, Oneida signed a joint venture deal with Placer Dome (TSE) whereby the latter company may earn a 60% interest in the Maple Lake and Floating Heart claims of Oneida. Placer will complete $1.3 million worth of exploration work within three years and make payments totalling $300,000.

Active exploration programs are also under way on the 52-claim Denison Lake property owned 75% by HSK Minerals (TSE) and 25% by Central Crude. So far, grab sample material has assayed as high as 0.78 oz gold, while soil samples have ranged up to 0.20 oz.

Under the terms of a recent option agreement with Central Crude, Blue Emerald Resources (VSE) will spend $1.3 million to earn a 50% interest in Crude’s Tamarack Bay claims, situated near the Denison Lake property.

With one new gold mine up and running, and two projects currently undergoing advanced exploration, the Mishibishu camp continues to attract healthy levels of mining investment, although the amount of staking activity has declined from levels experienced last year.

“Sales of new claim tags are down noticeably from last year’s level,” said a spokesman for the Ministry of Northern Development and Mines in Wawa.

“Exploration companies don’t really seem to be embracing the federal government’s new Canadian Exploration Incentive Program (CEIP) as vigorously as they might have,” he said, adding that “this is having an effect on the amount junior exploration activity.” Mishibishu camp — several ways to play it Recent1 yearShares Companypricehi/lowoutstanding Dominion Expl. 0.560.40-1.3557,250,970 Mishibishu Gold 1.000.35-1.40 9,750,000 HSK Minerals 0.450.36-0.9815,492,906 Windarra Minerals 0.750.72-1.4517,308,167 Central Crude 5.503.65-7.37 6,162,731 Muscocho Expl. 2.302.20-4.1530,964,663 Flanagan McAdam 2.502.10-3.1516,901,404 Granges Expl. 2.702.50-4.7022,794,285 MacMillan Gold 0.950.86-1.50 6,411,337 Oneida Res. 0.820.35-1.55 5,091,587 Alotta Res. 0.160.12-0.6013,135,264 Villeneuve Res. 0.200.12-0.50 9,539,893 Tundra Gold 0.400.30-1.5431,423,853 Blue Emerald 0.420.20-1.08 1,920,914 Noront Resources 0.900.20-2.20 4,483,290 Joutel Resources 0.180.15-0.3632,797,399 San Paulo Expl. 0.280.32-1.80 6,831,779

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