North American Gold

The Toronto-based firm, which this past summer won clear title in the courts to the Williams gold mine at Hemlo in northern Ontario, budgeted $20 million for its exploration department this year.

In addition to probing properties around existing operations, Corona has interests in exploration plays in Canada from Newfoundland to British Columbia, and in the U.S., Mexico, the Caribbean and Greenland. Regional exploration offices have been established at St. John’s, Nfld., Bathurst, N.B., Val d’Or, Que., Kamloops and Vancouver in British Columbia, and Reno, Nev.

In Newfoundland, the Ming’s Bight gold project was described by geologist Leni Keough as being the company’s most exciting in the province. Corona is financing the work there to earn a 70% interest from Varna Gold (ASE).

Drilling at Ming’s Bight had tested, by late summer, a strike length of 495 ft, to about 330 ft below surface. One drill hole cut 46 ft of 0.166 oz gold per ton, while another intersected 6 ft of 0.397 oz.

Elsewhere in Canada’s most eastern province, Dolphin Explorations (TSE), in which Corona has a 45% interest, thinks it has uncovered a new gold zone at its Cape Ray gold property. An exploration budget of $4 million was drawn up this year for the project, for which a production decision may be imminent. Project reserves (all classes) stand at 1.13 million tons grading 0.28 oz.

In northwestern Ontario at the Musselwhite gold property, Corona and its partners, project operator Placer Dome (TSE) and Inco Ltd. (TSE), have been working on a feasibility study. A 2,200-ton-per-day mill is envisaged for the project, 60 miles north of Pickle Lake.

The Jolu gold mine in northern Saskatchewan, in which Corona has a 30% interest, has been undergoing an underground drilling program. The results will help Corona and mine partner International Mahogany (TSE) to decide on extending the decline ramp to 1,050 ft.

Corona is active on the west coast, both at its wholly owned Nickel Plate gold mine in the southern part of British Columbia and elsewhere in the province through interests in a number of juniors. At Nickel Plate, while the company struggles to overcome ore-grade problems at the mine site, exploration on the neighboring Canty property has outlined about 450,000 tons of mineable reserves.

In the province’s northwest, Corona has an indirect interest in the exciting Eskay Creek gold prospect of Stikine Resources (VSE) and Calpine Resources (VSE). Calpine’s major shareholder is Prime Resources (VSE), in which Corona has an option to purchase additional shares and become Prime’s controlling shareholder. Prime also has a 40% interest in the Snip gold project, also near Stewart, B.C.

In the same part of the province, Newhawk Gold Mines (TSE) and Granduc Mines (TSE) have been reporting encouraging gold and silver assays from their Sulphurets project. Again, Corona is participating indirectly through its controlling interest in project operator Newhawk.

Other properties in British Columbia in which Corona has a direct interest include the Mount Polley copper-gold project near Williams Lake. Drill-indicated reserves of 53 million tons grading 0.44% copper and 0.017 oz gold have been announced.

South of the border, exploration continues at the Haile gold project in South Carolina, where a second zone of mineralization has been uncovered. Operator of the heap leach mine is Piedmont Mining (NASDAQ). Corona has a 12.6% equity interest in Piedmont. In Nevada, where Corona has interests in four producing gold mines, Corona is participating in a number of explo ration ventures. Property holdings include considerable acreage in the Carlin belt.

Exploration efforts continue in Mexico and the Caribbean region. Two Mexican properties were scheduled for drill-testing this year. In the Caribbean, the company has acquired exploration permitting rights for various islands.

Outside of North America, Corona has teamed with junior Platinova Resources (TSE) in the search for gold and platinum in East Greenland. The target is a Skaergaard intrusion; a large tonnage potential is indicated.

At Hemlo, where Corona has taken over operation of the Williams mine with Teck Corp. (TSE), its partner at the neighboring David Bell mine, an exploration drift is being driven westward from the 9175 level (3,800 ft below surface). Drill stations are being set up as the drift is advanced. Initial core assays are expected to be available by year’s end.

The Williams operation, with estimated output this year 490,000 oz, is Canada’s largest producing gold mine.

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