OGS improves mineral potential of northern Ontario

Discoveries made by Ontario Geological Survey (OGS) geologists have boosted the mineral potential of the Kapuskasing and Marathon areas.

A soil sampling project being completed by OGS staff in the Kapuskasing area has confirmed the presence of kimberlite indicator minerals, four of which are positive indicators of diamond-bearing kimberlite.

According to OGS geoscientist Thomas Morris, the findings suggest an “excellent opportunity” for the presence of diamond-bearing kimberlite along a large geological structure known as the Kapuskasing structural zone, which stretches south to Wawa and north to James Bay.

In addition to the kimberlite indicator minerals, several minerals associated with base metal deposits were recovered. The presence and distribution of these minerals suggest several potential targets for base metal exploration in the area. In addition, one anomalous gold result was recorded.

The soil sampling work in the Kapuskasing area follows on the heels of a similar, successful program conducted by the OGS in the Wawa area. Indicator mineral results from the latter program sparked a staking rush, and subsequent exploration resulted in the discovery of diamond-bearing rocks along the Wawa portion of the Kapuskasing structural zone.

The OGS has also released preliminary results that show good exploration potential for precious and base metals near Marathon and Hemlo.

The project was carried out as part of the ongoing OGS geochemical sampling program. It outlines at least six areas where significant geochemical lake sediment anomalies occur. These show concentrations of gold, copper, nickel and molybdenum that are significantly higher than normal.

OGS geoscientist Richard Dyer says several of the anomalies identified in this study are promising because of high levels of rare earth elements.

“Enhanced levels of rare earth elements occur in lake sediments near both the Hemlo gold deposit and the Winston Lake zinc mine north of Schreiber,” Dyer notes.

The Marathon-Hemlo lake sediment sampling survey is one of more than two dozen ongoing OGS field projects. It follows a similar program in the Schreiber-Terrace Bay area, where the OGS identified more than 20 anomalous areas of significance. That study has prompted widespread exploration activity since its September 1997 release.

“These encouraging preliminary results create new and exciting opportunities for mineral exploration in Ontario,” says Chris Hodgson, Ontario’s minister of northern development and mines. “These types of discoveries help ensure the long-term viability of the $5-billion-a-year mining industry.” The results of the OGS’ work in both Kapuskasing and Marathon were presented at the recent convention of the Prospectors & Developers Association of Canada, held in Toronto.

Speaking at the convention, Hodgson announced that, for the first time in several years, Ontario led all provinces and territories in mineral exploration expenditures in 1997. About $190 million was forecast to have been spent on exploration in the province last year. In addition, active mining claims reached record levels, topping 180,000 for the second consecutive year.

Hodgson stressed that the province remains committed to cutting red tape and promoting Ontario’s mining opportunities, and is working with the mining industry on regulatory reforms.

“We want to continue improving the business climate so that our jurisdiction remains a preferred destination for mining investors.”

He cited a recently released survey by the Fraser Institute identifying Ontario as the most attractive jurisdiction in Canada for new investment in the minerals sector.