Noranda, Akiko proceed at Springpole property

Although three recently completed holes on the Springpole gold project, 70 miles east of Red Lake, Ont., failed to return any significant results for 50/50 partners Noranda (TSE) and Akiko-Lori Gold (VSE), the companies say they will continue drilling on the property with two machines until spring breakup. The three holes were completed earlier this month on IP targets southeast of the main Portage zone, said Akiko director John Ivany.

However, two drills will continue working until breakup, with their efforts focusing on the northwestern strike extent of the Portage zone. That zones strikes roughly east-west and contains the Main, Vein and Jasper gold zones.

Shares of Akiko-Lori, managed by Prime Explorations and Vancouver mining promotor Murray Pezim, have traded as high as $7 recently within a 52-week range of $0.07-7. The weekly trading volume reached 423,000 in the last week of February. There are currently about four million shares of Akiko issued.

A geophysical crew has been mobilized to the property and is conducting IP surveys over the northwestern extension of the Portage deformation zone which hosts a known gold deposit.

Previous intersections from the Vein and Main zones include 0.24 oz. gold per ton over 21.5 ft., 0.65 oz. gold over 13.5 ft., 0.87 oz. gold over 8 ft. and 0.21 oz. gold over 19.3 ft., according to Akiko.

Meanwhile, the companies have amended their option agreement with Gold Fields Canadian Mining, which had called for them to make a $750,000 cash payment by March 31. Instead, Noranda and Akiko will now make a smaller cash payment of $400,000 by March 31, and have committed to spend $350,000 on exploration by month-end.

In addition, the joint venture partners have agreed to make a number of annual option payments due on underlying agreements covering certain claims.

Another cash payment of $400,000 will be due to Gold Fields on March 31, 1991.

Akiko and Noranda will jointly earn a 51% interest in the property by spending $10 million before March 31, 1994. That interest can be increased by another 19% to 70% if the companies spend a further $10 million within three years of earning their initial interest.

The joint venture has been evaluating the bulk tonnage gold potential of the Portage zone, part of a larger deformation structure containing the Main, Vein and Jasper zones.

“We’re looking at a large-tonnage, low-grade gold deposit situated under part of Springpole Lake,” a Noranda spokesman told The Northern Miner. “We have to evaluate all the economic factors very carefully in this type of situation.”

The property is about 25 miles from the nearest road, and is currently reached by a winter ice road across several lakes.

Results obtained in the Portage zone during 1990 drilling include 115.8 ft. of 0.073 oz. gold from hole 125, 112.5 ft. of 0.063 oz. from hole 126, 111.6 ft. of 0.072 oz. from hole 127, 166.7 ft. of 0.053 oz. from hole 128 and 160.8 ft. of 0.045 oz. from hole 129.