Noranda, Freewest expand size of drill program at Harker bet

Joint venture partners Freewest Resources (ME) and Noranda (TSE) have quietly expanded the size of a major drill program under way on their Harker-Holloway property near Matheson, Ont. The program, already the biggest drill contract in Eastern Canada, was recently expanded by 65,000 ft., and should reach completion by late January. Noranda has completed more than 100,000 ft. of drilling on the project since it began work earlier this year.

Deep infill holes are being drilled at 160-ft. intervals between depths of 1,000 and 2,000 ft. below surface in the property’s Lightning gold zone. Most of the known gold deposit lies on five patented claims owned 40% by Freewest and 60% by Noranda.

A joint venture comprising Noranda (51%), Freewest (34%) and Newmont Mining (15%) can earn a 70% interest in the adjacent Teddy Bear Valley Mines (COATS) property.

Over the next four months, operator Noranda expects to finish another 25-35 holes in the Lightning zone before it makes an underground decision, The Northern Miner learned on a recent visit to the site.

Surface drilling completed to date on the 5-claim Freewest property has already confirmed a significant deposit with preliminary reserves of at least four million tons grading 0.25 oz. gold per ton. That is considered to be the threshold tonnage required for an underground decision.

“The grades are good and the widths are good, so Noranda shouldn’t hesitate in putting this project on the fast track,” says Freewest President Mackenzie Watson.

“The story of the Lightning gold zone is just beginning to be told,” says Watson who originally went public with Freewest in 1987.

Freewest’s shares, of which there are nearly eight million issued and outstanding, have traded recently at around $3.05.

Noranda has the option to increase its stake in Freewest to 12% by taking down another 540,000 flow-through shares at $4 per share in November.

Five drill rigs have been turning around the clock on the property since March when a $3.5-million work program began. The next batch of drill results is expected sometime in October.

Most of the drilling has concentrated on claim L10476 of the Freewest property, which lies just off Hwy. 101 and about one mile north of American Barrick Resources’ (TSE) Holt-McDermott mine.

The Holt-McDermott mine was brought into production at a cost of $78 million in June, 1988. The 1,600-ton-per-day mine and mill could eventually be used to treat material from the Lightning zone.

According to Richard Cote, project supervisor for Noranda, the Lightning zone doesn’t subcrop until around 800 ft. below surface. It plunges east at roughly 30 degrees and has been traced along a strike length of 2,600 ft. The mineralization has been intersected to depths of 2,600- ft. and is still open downdip to the east.

Core from hole 98, examined by The Northern Miner, showed a spectacular 64-ft. interval which averaged 0.43 oz. gold. The gold, which is not visible, is associated with fine, disseminated pyrite within a distinctive grey-colored silicious horizon.

“The essentially stratiform gold deposit is quite predictable along its length,” explained Cote. He says the main zone is hosted by a green- colored envelop of sericite-altered mafic volcanic rocks. The entire package lies above an ultramafic footwall horizon.

When Noranda goes elephant hunting, it certainly knows where to look because it couldn’t have chosen a more fortunate location along the Porcupine Destor fault. A paved highway straddles the property and skilled labor is available from the nearby towns of Matheson, Kirkland Lake, Ont., and Rouyn- Noranda, Que.

Noranda’s Harker-Holloway land package is situated directly atop the well-known Porcupine Destor fault, which in the Timmins gold camp has historically produced more than 57 million oz. of gold.

Two drills were also seen by The Northern Miner at work on the surrounding Canamax (TSE) claims which have been optioned to Noranda. That deal calls for Noranda to spend $4.5 million over four years to earn a 50% interest in 400 claims encompassing the Matheson properties owned by Canamax. No results have been released from that work yet.

Shares of Noranda may be taking a beating on the stock market recently, but on the exploration front the company has been on winning streak.

The Lightning zone is just one in a string of recent exploration successes for Noranda. Others include the company’s Lynne base metal discovery in Wisconsin, and the New World gold discovery in Montana where Crown Butte Resources (TSE) is the partner.

Earlier this year, Noranda made yet another new gold discovery on ground held jointly with Glimmer Resources (VSE) in Beatty and Hislop twps., along the Destor Porcupine fault. A third phase of drilling is scheduled to commence on that property by mid-October.

“In the last couple of years, Noranda has had a lot of luck with new discoveries,” says one analyst. “Noranda used to be known as a company that bought all of its deposits.”

Meanwhile, Timmins-based Moneta Porcupine Mines (TSE) is thankful for Noranda’s success because it controls a huge block of ground along the Destor Porcupine fault nearby in Michaud Twp. Moneta has about five miles of strike length along the fault, including extensions of Jonpol Explorations’ (TSE) gold deposit in Garrison Twp.

Analysts following the Harker- Holloway project like the fact that Noranda is operator and no major environmental snags are expected.

According to Ian Atkinson, manager in northeastern Ontario for Noranda, the Lightning zone does not contain any arsenopyrite and no problems are anticipated in the metallurgy. “There have been no problems with recoveries in initial test work,” he says.

Toronto-based Silverside Resources (TSE) also owns property in nearby Garrison Twp. and hopes to bring in a partner to fund additional exploration. More than 200 shallow holes, all above 500 ft., have been drilled on the property to date. A small open pit zone has some 40,000 tons of 0.21 oz. gold.

“I can’t understand why everyone’s rushing off to remote mountaintops near Eskay Creek, B.C.,” one observer told The Northern Miner. “There are still good discoveries waiting to be found along the highway in northeastern Ontario.” SOME STOCKS TO WATCH IN THE TIMMINS-MATHESON GOLD CAMP recent share price Company price o/s (million) Freewest Resources (ME) 3.15 7.8 Teddy Bear Valley (COATS) 1.60 3.1 Lightval Mines (private) na 3.3 Jonpol Explorations (TSE) 0.42 14.1 T&H Resources (TSE) 0.19 11.3 Moneta Porcupine (TSE) 0.38 9.7 Glimmer Resources (VSE) 1.15 1.7 Silverside Resources (TSE) 0.03 10.9 Stroud Resources (TSE) 0.24 5.5 Goldpost Resources (TSE) 0.10 10.7 St Andrew Goldfields (TSE) 0.80 13.0 Coniagas Mines (TSE) 0.70 4.7 Kingswood Explorations

(ASE) 0.30 12.5 Canamax Resources (TSE) 0.75 22.0