New exploration records for Newfoundland in ’87

Mineral exploration activity in Newfoundland during 1987 will very likely set new records for (a) claim staking, (b) the number of claims held in good standing, (c) total exploration expenditures and d) total diamond drilling activity.

The province is bustling with activity on a range of projects from grassroots exploration to advanced underground exploration programs.

Gold is the focus of much of the activity but base metals are still very much in the spotlight with recent announcements of discoveries by Noranda Exploration in the Duck Pond-Tally Pond area of central Newfoundland.

Total exploration expenditures for 1987 will probably be in the $20 million to $25 million range.

During 1986, 550 diamond drill holes totalling 41,000 m were completed. These figures will be surpassed with the amount of drilling activity during 1987. Tremendous potential

Mining companies, both large and small, along with individual prospectors and promoters, are only now beginning to fully realize the tremendous potential for gold deposits in Newfoundland.

Over the past three years, following the announcement of the discovery of the Hope Brook gold deposit, exploration activity has heated up and numerous new gold occurrences have been discovered in a wide variety of geological environments, raning in age from late Precambrian to late Paleozic.

Gold is known to occur in five principal geologic settings in Newfoundland: * Lower Paleozoic ophiolite sequences, including mafic and ultramafic plutonic and extrusive rocks. * polymetallic massive sulphide deposits associated with Ordovician island-arc volcanism in the Central Mobile Belt. * subvolcanic epithermal alteration zones in Paleozoic volcanic rocks in the Central Mobile Belt and the Humber Zone of western Newfoundland. * hydrothermal alteration zones within granitoid rocks of the Precambrian basement of western Newfoundland. * epithermal alteration zones in Late Precambrian felsic volcanic sequences in the Avalon Zone of eastern Newfoundland.

Besides Hope Brook, the main exploration effort in the southwest area is on the Cape Ray gold deposit northeast of Port aux Basques.

The gold deposits, which have been known since the late 1970s, are located along the Cape Ray Fault, which extends from Port Aux Basques on Newfoundland’s southwest coast inland to the northeast for approximately 125 km.

The gold mineralization occurs in en echelon shears related to the fault structure. The host rocks are highly contorted and folded, and contain quartz-carbonate in-filling plus several other minerals, including chalcopyrite, galena, sphalerite and minor arsenopyrite.

Estimated reserves as of December, 1986, are 991,600 tonnes grading 6.28 g gold per ton. A higher grade portion of these reserves (695,300 tonnes), averages 8.02 g gold per ton. Significant program

Mascot Gold Mines, on behalf of Dolphin Explorations, managed a significant program of ground surveys and diamond drilling on the Cape Ray property in 1986.

In mid-June this year Dolphin commenced exploration activities on two of its Newfoundland gold properties.

At Cape Ray surface drilling at the Main zone (41 Zone), started with one diamond-drilling rig on June 19 and a second rig on June 29.

Dolphin announced that by the 9th of September, 8014 m of diamond drilling had been completed and drilling continues.

A decline is also being driven on the 41 Zone for an underground program. On the northern peninsula

Discussions between Teck Corp. and the provincial government regarding the reopening of Newfoundland Zinc Mines, located at Daniels Harbour, were successfully concluded in late June.

Teck, with the financial assistance of the provincial government, has committed to reopen the mine for at least a 15-month period.

The company is undertaking an aggressive exploration program to try to delineate additional zinc reserves.

Known reserves are sufficient to last about two years, and exploration potential is considered to be good.

The reactivation process began in mid-July and approximately 100 people are now working at the mine. Others with claims on the Great Northern Peninsula include Shear Exploration, (which has acquired claims in the Hare Bay area), and Roderick Dare, who has staked marble deposits in the Roddickton-Canada Bay area.

An exploration crew has been actively assessing the marble deposits during the summer, and this work has included some drilling and bulk sampling. Western White Bay area

Selco Division of BP Resources Canada, Varna Resources and Marker Resources have completed the third phase of a $1.5 million exploration agreement designed to earn Varna a 50% interest in the Jackson’s Arm property.

With the third phase of work completed, the property has a total of 31 holes completed on the Rattling Brook zone.

The participants in the joint- venture exploration program are encouraged and believe the property has potential for the discovery of a large-tonnage, low grade deposit.

A third phase of diamond drilling involving two diamond drill rigs and totalling 4,000 m had been due to commence in late October. An IP survey has been carried out and further trenching and sampling programs have been completed.

BP has also completed trenching a large IP-soil anomaly in the Big Davis Pond area on property optioned from Lew Murphy. A soil- sampling program has also been done in this area.

This project is located about 10 km south of the Rattling Brook zone in a similar geological setting.

Several other groups have mineral rights in this region and most have conducted field programs during 1987.

The Baie Verte Peninsula was the most active area in the province during 1987.

The 1986 staking rush continued in the area through the spring of 1987, bringing the claim total for the peninsula up to about 6,000 claims.

Most active in the area is Noranda Exploration, with several joint-venture partners including Muscocho Exploration, Tashota- Nipigon Mines, Galveston Resources, International Wildcat Resources, and Impala Resources.

Total expenditures on these agreements alone could reach $4 million this year. Noranda has completed a 7-km access road from Mings Bight to the Devil’s Cove prospect, and is currently conducting ground surveys and diamond drilling at this prospect.

Noranda has a contractor on the property who is undertaking underground exploration and bulk- sampling work. Noranda has a belt of claims about 40 km long, southwest and east of the Devil’s Cove prospect.

They are performing an extensive variety of exploration surveys along this entire belt.

Numerous gold occurrences have been discovered at Devil’s Cove. The main prospect, which was discovered through geological mapping and prospecting in June of last year, is found in chloritic schist and quartz veins.

Geologically, the gold prospect is located near the Baie Verte lineament, which runs the full length of the Baie Verte Peninsula southwestward to Grand Lake, and consists of a major fault marked by dismembered ultramafic rock units.

There are 15 other companies with property in this area, most of whom have been or will be active in the region this year. Over $5 million

The activity in this region during 1987 will certainly exceed $5 million in exploration expenditures.

Several of the companies have been encouraged by their work to date and will be conducting diamond drill programs during the fall.

A number of companies are active in several areas in the vicinity of Notre Dame Bay, which is located on the northwestern end of Newfoundland’s Central Mobile Belt.

In the west on the Springdale Peninsula, Noranda has a large block of approximately 500 claims north and west of Springdale, centred on the old Rendell Jackman property. Noranda is conducting a program of ground surveys in the area along with some diamond drilling.

Several other companies including Western Canadian Mining, Jascan, Rio Algom Exploration, and Lacana, have property in the region and are expected to be active this year.

Since BP Resources purchased the former Abitibi-Pri
ce mineral holdings in the Buchans-Red Indian Lake region in 1985, they have increased exploration.

The company is committed to spending several million dollars over the next few years to explore the concession area, which is considered by many to be one of the prime areas of high mineral potential in the province.

Gold is the prime target. The area also contains the former Buchans base and precious metal mine and a number of other significant base metal deposits.

Noranda recently announced that they have discovered significant base metal mineralization with associated precious metal values in the Duck Pond area located just west of Tally Pond.

Noranda has six drills working the recently-discovered zone on this property.

The project is probably the most exciting one in the province at the present time, as drilling continues to delineate a very significant high grade mineralized zone containing metal values comparable to those mined at Buchans.

Exploration activity increased along the GRUB (Gander River Ultrabasic Belt) line in the Gander River area.

A number of companies and individuals have staked claims in the area, including Noranda, which is the major player.

Further to the south, on the southeast Gander River, Falconbridge staked several hundred claims. Some ground surveys were conducted there in 1986 and are continuing this year. Some diamond drilling is planned for this fall.

Lewis Murphy still has a small mineral holding in the Square Pond-Gambo area to the east of Gander Lake. Bay d’Espoir

Several companies have active exploration programs in the Bay d’Espoir region. The largest ongoing program has been by Westfield in the area of Kim Lake and Little River.

Westfield is very active on their properties this year, conducting a variety of ground surveys, including trenching and diamond drilling. This is a joint venture program involving Westfield, Coniagas Mines, and Anglo-Dominion Gold Exploration.

In October last year Westfield and its partners announced the discovery in the Little River area of stratabound gold mineralization that extends over a distance of four kilometres. Grab samples within trenches on the site assay as high as 11.66 g gold per ton, and are commonly between 3.4 and 6.9 g gold per ton.

Westfield has revealed that the gold-bearing zone was intersected in all nine of the holes drilled on the property during November, 1986; values in several of the holes were significant.

Drilling resumed on the property in October this year, with 1,500 m initially planned. The company is very encouraged with the results of its 1987 program and expects to be very active in the area right up to the end of the year.

The company’s budget for this year is $750,000, up 50% over last year’s.

High gold values are associated with arsenopyrite, pyrrhotite and pyrite, and are hosted by a sequence of felsic to intermediate volcanic tuffs and sedimentary rocks of the Ordovician Isle Galet Formation.

Geologists believe these rocks are correlative with the rocks hosting the Hope Brook gold deposit to the west along the south coast.