Newfields to probe zone via Lac’s Lakeshore mine

Vancouver-based Newfields Minerals has reached an agreement with Lac Minerals which, Newfields hopes, will allow it to expand reserves at its Kirkland Basin gold prospect in Kirkland Lake, Ont.

During a recent $2.5-million drill program on the 980 acre property which is bordered by Lac’s Macassa mine and the former Teck-Hughes/ Kirkland Lake gold mines, Newfields encountered a hydrothermal system consisting of two segments separated by several hundred ft of gold-bearing material. Called the “Narrows Break” it currently hosts an estimated 375,000 tons of 0.25 oz per ton.

By concluding an agreement with Lac Minerals to lease the old Lake Shore mine infrastructure, Newfields hopes to explore the so-called “Narrows Break” at depth without having to sink a costly exploration shaft.

“This is an effective way to get underground without doing drifting and raising,” said Newfields President Dan Clark.

During the first year of the lease, which extends for a minimum 10-month and maximum 3-year period, Newfields will pay Lac a $50,000-per-month rental fee.

In the first two months of the lease period (it can be terminated after 10 months), Newfields will spend an estimated $400,000 to rehabilitate the Lake Shore No. 5 shaft down to the 3,950-ft level.

The company says it will also drift westwards from the Lake Shore north-south crosscut at the 3,075-ft level through to the 600- acre Teck-Hughes property where Newfields has an option to earn a 50% interest.

According to Newfields, approximately 2,500 ft of drifting along the narrows break on the Teck- Hughes property has been proposed.

Newfields will also undertake 600 ft of raising and conduct 20,000 ft of underground drilling at specific points on the Teck-Hughes property.

Newfields adds that three diamond drill rigs continue to target the narrows break zone. Surface drilling costs combined with underground expenditures and the lease agreement are expected to reach $4 million during the next 12 months.

The company has $2 million in hand for the Kirkland Lake project through mvp 1987 Ltd. Partnership and an additional $2 million from mvp 1988 Ltd. partnership has also been arranged.