NO HEADLINE (June 17, 1991)

Albertas’ placer miners — they’re glad no-one notices

B.C.’s Golden Triangle target for broader exploration effort

Northwestern British Columbia’s “Golden Triangle” and the Quesnel Trough are once again expected to account for most of the exploration dollars being spent in the province this season.

But this year local mining analysts expect to see both juniors and majors pursue a broader range of exploration targets than in the past. Analysts see more and more companies shifting away from the single-minded pursuit of gold to look for a variety of deposit types, particularly polymetallic massive sulphides and porphyry copper-golds.

The success of this approach has already been demonstrated by two fairly recent discoveries; the unique Eskay Creek gold-rich massive sulphide deposit near Stewart and the Mt. Milligan gold-copper porphyry deposit north of Prince George.

The Iskut River gold camp north of Stewart may have to be renamed now that several companies are exploring the region for polymetallic massive sulphide mineralization. For example, partners Thios Resources (VSE) and Eurus Resource (VSE) recently proposed a $2-million program for their Rock & Roll and Bornagain projects near the new Snip gold mine (Cominco and Prime Resources Group).

Drilling to date at Rock & Roll has outlined a preliminary reserve of 640,000 tons grading 0.072 oz. gold, 9.8 oz. silver per ton, 0.79% lead, 3.08% zinc and 0.64% copper.

But the successful startup of the Snip mine means that “Snip-type” gold targets will also be an important exploration focus for companies working in the Iskut River area.

Despite some unresolved claim disputes, the Eskay Creek region should be busy this summer as road construction from Highway 37 to Volcano Creek begins. Corona (TSE) will be continuing to advance the high-grade Eskay Creek deposit toward production on behalf of partners Prime Resources Group (VSE) and Stikine Resources.

Exploration programs on the nearby SIB and GNC claims will be closely watched this season. Corona is operating the program on the GNC claims for Prime and Stikine which each holds 33.3% interests. The remaining interest is held by Canarc Resource (VSE).

As for the SIB claims, partners Silver Butte Resources (VSE) and American Fibre (VSE) plan a drill program to further test an area where a 1990 drill hole returned 46.9 ft. grading 0.42 oz. gold and 30.91 oz. silver. The geological setting is reported to have similarities to the Eskay Creek deposits.

With Cominco backing out to concentrate on other projects, Redfern Resources (TSE) is looking to take on a new partner to continue work at the Tulsequah Chief massive sulphide project near the Tulsequah River north of Iskut. Redfern expects that an aggressive drill program will be carried out this season to further test the deposit, particularly at depth.

Preliminary reserves calculated by Redfern at the end of the 1990 program are eight million tons grading 1.55% copper, 1.23% lead, 6.81% zinc, 0.08 oz. gold and 3.19 oz. silver.

Juniors under the Prime Equities (VSE) umbrella will probably account for the bulk of exploration activity in northwestern British Columbia this season. Some of the funds are being supplied by Teck (TSE), which recently concluded a financing agreement with Prime Equities and various other juniors. Several of these companies will be exploring an area roughly midway between the Galore Creek and Tulsequah River areas, among them Galico Resources (VSE) and Core Ventures (VSE). Gold-silver mineralization associated with copper-lead-zinc values is the main exploration target. The most advanced property in this area is Galico’s Metla property which is ready to be drilled this season.

Gold Fields Canadian Mining is expected to be the new player in northwestern British Columbia this summer now that it has negotiated an agreement with Akiko-Lori Gold (VSE) and three associated companies. This group of juniors has a substantial land package in the region, and precious metals, namely gold, will be the primary exploration target.

Gold targets will also be actively explored in the Stewart region where Westmin Resources (TSE) already operates a gold-silver mine and mill. Westmin is reported to be negotiating custom milling opportunities with a number of companies, and has already agreed to process reserves from Tenajon Resources’ (VSE) SB gold property in return for a 50% interest.

Bond International Gold (TSE) hasn’t announced a 1991 program for its Red Mountain gold project near Stewart, and street talk in Vancouver is that LAC Minerals, BIG’s largest shareholder, may be looking to divest itself of the property.

Earlier this year, Bond reported that exploration to date had outlined an uncut preliminary reserve of 933,000 tons grading 0.37 oz. gold. Newhawk Gold Mines (TSE) is shifting its exploration focus this season on the Sulphurets property north of Stewart, a joint venture with Granduc Mines (TSE). Previous work was concentrated on a complex underground vein-type gold deposit, but a feasibility study found it was not economic at current gold prices.

In March, Newhawk announced a $1.5-million surface exploration program to test other prospective areas on the 32-square-mile property. Of particular interest are a number of open pit-type gold and copper-gold targets as well as other precious metal vein systems.

Newhawk’s property isn’t far from Placer Dome’s (TSE) Kerr project, a porphyry copper-gold deposit that was discovered by a junior several years ago while looking for gold. Placer acquired the project and then carried out a $3.8-million program last summer. At the end of that drilling program, Kerr was reported to contain preliminary reserves of 138.6 million tons grading 0.62% copper and 0.008 oz. gold. Metallurgical testing is being conducted, and a further drilling program is planned for 1991.

Further south near Smithers, Varitech Resources (VSE) is planning a program for its newly acquired Big Onion porphyry copper deposit. Based on work by previous operators in the 1960s and 1970s, the deposit is reported to contain preliminary reserves of about 80-100 million tons grading 0.42% copper and 0.02% molybdenum, with unknown gold and silver grades.

The deposit has a large, near-surface supergene zone where chalcopyrite and pyrite have been almost completely leached and the copper redeposited in a higher-grade zone of chalcocite and covellite. Varitech believes the supergene zone should be amenable to copper leaching and electrowinning, a low-cost processing method similar in some respects to the heap leach process in gold mining.

The Toodoggone camp northeast of Smithers is taking on new life now that several companies are vying for larger interests in the North and South Kemess porphyry copper-gold projects. The region already has an operating gold mine — Cheni Gold’s Lawyers deposit — but success at South Kemess in particular has provided the region with a new exploration target. Last year’s drilling outlined a large porphyry system with mineralization grading in the order of 0.010 oz. gold and 0.26% copper.

A number of companies have announced exploration programs for properties near the Mt. Milligan deposit where owner Placer Dome is now completing a feasibility study. Work in the surrounding region last year was preliminary or even grassroots in nature, but this year analysts expect to see more drilling results, and hopefully more excitement, now that targets have been outlined.

A number of other prospective areas, including the Galore Creek camp, are also expected to be actively explored for their potential to host porphyry copper-gold deposits.

In Alberta, the first ounce of gold retrieved by placer mining is free. After that, the government takes a 10% royalty. No one has ever claimed more than one ounce.

That is not to say that the amount of gold retrieved by placer mining in the province is insignificant. It is, from the commercial standpoint, but not so for the individual who is willing to spend some time and effort at it. Borrowing from renowned Canadian poet Robert Service, there are still “men who moil for gold” on the banks of many Alberta rivers. But today, it’s more a hobby and a social occasion, rather than a roll of the dice to strike it rich.

No one really knows or would even hazard a guess at how much gold is actually retrieved by placer mining of Alberta rivers.

With no government policing to collect its share of royalties, the underground trade in gold acquired through placer mining gives the miner that satisfaction of an income which brings clear profit. As well, local jewellers have an over-the-counter source that can’t be traced by the tax collector. According to Brian Hudson, manager of the minerals agreement branch of the Alberta government’s Department of Energy, 500 permits have been issued to operate a sluice box for claims on a variety of rivers originating in the Rocky Mountains. Among the rivers most often prospected and staked are the North Saskatchewan, McLeod, Athabasca and Peace.

With such a limited potential for gold mining on a commercial scale, and with no restriction on gold panning, Hudson said the cost of policing placer mining would be prohibitive.

“Anyone can stake a 5-year claim for $30,” he said. “That’s a better deal than a fishing licence now.”

Placer miner and retired engineer Ken McCormick can be found most days sluicing along the North Saskatchewan River in Edmonton, retrieving small quantities of gold dust of 20-30 mesh. He caught the prospecting bug six years ago, when he accidentally met up with members of the Edmonton Gold Prospectors Association while panning the river.

“I discovered that they were the grandest bunch of rogues you ever met,” said McCormick, using a term commonly used in history to describe the quality of pros-

pectors during the heyday of the Klondike gold rush.

During that time, Edmonton was a major stopping-off point for supplies for the multitude of would-be prospectors hoping to find their fortune in the Yukon. The Klondike Days celebration is still the main summer festival in Edmonton.

McCormick believes that for a cash outlay of about $550, gold prospecting can be an interim source of income for anyone having difficulty finding work. In one promising claim on the Gold Bar Creek, which runs off the North Saskatchewan River, McCormick claims he can retrieve 200-250 colors per pan. Each color will bring a penny. And at 20 pans an hour, that could generate $50.

A little further down the North Saskatchewan River, gold prospecting becomes more serious and lucrative.

And it was exactly at a time when jobs were scarce when it attracted hundreds of prospectors. That portion of the river running 60 km from the Alberta border to Maidstone, Sask., yields a significant quantity of gold to placer miners.

Some miners make their living from sluicing sand bars in the river. Their catches weigh in at slightly larger than flower dust, but the occasional gold flake or small nugget is also discovered.

Paradise Hill, Sask., resident Dan Palsich is one of the more serious placer miners in the area, having worked at it for about 20 years. At one time, he and seven partners purchased heavy equipment to seriously mine the sand bars. They owned 300 claims of about 40 acres each, and expected to do well because gold was selling at about $1,000 per oz. But after one summer, they discovered the idea of mining seriously was more attractive than actually doing it.

During the Depression years, Palsich said it was standing room only on some portions of the river, with hundreds of desperate people eking out a living from placer mining.

Even today, Palsich said a good sand bar will yield half an ounce, or an ounce a day.

Tony Kryzanowski is a freelance writer from St. Albert, Alta.