Partners rev up exploration efforts at Matheson JV

It’s no coincidence that Matamec Explorations’ (MAT-V, MTCEF-O) new Matheson joint venture, in the Timmins gold camp, is next to Goldcorp’s (G-T, GG-N) Hoyle Pond gold mine property, says the company’s vice-president of exploration, Bill MacCrae.

MacCrae says the idea of strategically consolidating several properties into the Matheson joint venture caught Goldcorp’s attention. In January, Goldcorp signed an option agreement with Matamec and a private drilling company, Explorers Alliance.

“As Hoyle Pond goes deeper, it looks to be heading off to the northeast and getting closer to our property,” MacCrae says.

The Hoyle Pond mine has produced 2.2 million oz. gold at an average grade of 13.5 grams gold per tonne since 1985.

Matamec’s first target for its planned 3,000-metre drill program to start later this spring is just 1.7 km from the Holye Pond head-frame, the company says.

The first 3,000 metres will be followed up by another 5,000 metres, bringing 2008 exploration costs to about $1.2 million. Matamec is just awaiting approval from Goldcorp before it goes ahead with drilling.

The 3.7-sq.-km Matheson property is made up of 155 units from Goldcorp (2.3sq. km), 73 units from Explorers Alliance, and two units from Explorers and Matamec.

Explorers Alliance and Matamec each have the option to earn a 25% interest in the property by spending $2 million in exploration over three years, leaving Goldcorp with the remaining 50%. Goldcorp can increase its share to 70% (with Matamec and Explorers at 15% each) by paying $6.3 million and completing a feasibility study.

Key claims had been the subject of a legal battle for nearly two decades, preventing any exploration, but Matamec has spent the last two years working out all of the issues.

“The legal issues arose when (Timmins-based) Colbert Drilling and Exploration did the drilling for a company (and) didn’t get paid,” MacCrae explains. “And long story short they ended up with the property in compensation for their efforts.”

Matamec acquired a 100% interest in those claims by paying $645,000 to Colbert, which in turn paid Matamec $675,000 for 2.25 million flow through shares at 30 each and 2.25 million warrants exercisable at 45 over an 18-month period. Colbert also holds a 1.5% net smelter return royalty.

Matamec’s first target is the Mill Creek/Colbert zone, which was first tested by Falconbridge (since taken over by Xstrata [XSRAF-O, XTA-L]) in 1986; the company acted on news that visible gold had been seen when the foundations for the Xstrata metallurgical site were excavated.

Falconbridge drilled 42 holes totalling 8,800 metres on 30-metre section lines over a distance of 400 metres between 1986 and 1990. MacCrae says drilling returned economic mineralization in every hole.

“They didn’t continue because at 250 metres (mineralization) dipped off the property and they had no control of it,” MacCrae says. “And the other thing was, they weren’t looking for something near surface because it’s right adjacent to the Xstrata metallurgical site.”

Around the same time, Anglo Canadian reportedly drilled 13 holes for 3,900 metres on the downdip extension of the Mill Creek zone, showing a potentially continuous zone for 350 metres.

On the Colbert property, his- torical highlights include 30 cm grading 52.8 grams gold per tonne, 1.74 metres grading 29.42 grams gold and 8.5 metres grading 4.87 grams gold.

Historical results from the Mill Creek zone include 50 cm grading 24.14 grams gold and 6 metres grading 3.28 grams gold.

Matamec also plans to do an induced- polarization survey over other targets onto mafic/ultramafic belts to the north within the property.