Pelangio proves up area near former producer

Pelangio Mines (PLG-V) has intersected significant gold on the Detour Lake property in northern Ontario, just west of the past-producing open pit, and a new resource estimate on the eight known mineralized zones shows a significant inferred tonnage.

The 10-hole program included 25 intercepts grading 11.44-390 grams gold per tonne over 0.5- to 1-metre widths. Sixteen of the intercepts graded higher than 20 grams gold (the historical cutting grade used at Detour Lake).

All the holes contained zones of lower grade, and some of the low grade was independent of the high-grade intercepts. These grades ranged from 0.7 to 7.2 grams gold over widths of 0.5-29 metres.

Two holes failed to cut high grade, though one intersected 26 metres grading 1.1 grams gold, as well as a 4-metre section of 2.7 grams gold. The latter interval included 2 metres grading 5.4 grams gold. The other cut as high as 3.6 grams gold over 6.5 metres and a 4.5-metre interval grading 2.7 grams gold.

The holes were drilled 200-500 metres west of the pit. An east-west-trending, 75-metre wide alteration zone in this area exhibits variable potassic alteration, and is cut by felsic dykes and sills, quartz veining, and sulphide mineralization.

Higher-grade lenses trend west-southwest and are sub-vertical. Drill holes have cut these lenses at 40-50 to core axis.

The area was previously drilled by former owners at 50-100-metre spacing. The Detour Lake open-pit mine operated from 1983 to 1988, during which time it produced 313,070 oz. gold from 3 million tonnes grading 3.25 grams gold per tonne.

The drilling was part of an ongoing scoping study on the project, 160 km northeast of Timmins. An independent resource estimate, part of the study, now credits the property’s West zone with an indicated resource of 2.5 million tonnes grading 2 grams gold per tonne. The resource, based on a 0.65 gram-per-tonne cutoff grade, is immediately west of the old open pit, and includes drill-indicated resources down to 250 metres vertical depth.

A further 9.4 million tonnes in the West zone is classed as an inferred resource, and averages 1.8 grams gold per tonne. More inferred resources — 5.9 million tonnes at 1.6 grams — are 500 metres to the west in the Calcite zone.

The same resource estimate also calculated inferred figures for deeper mineralized zones that are potentially amenable to underground mining. The main part of the deeper resource is in the four Main zones — Main, Main West, No. 3 and No. 4 — which together hold 1.4 million tonnes grading 4.8 grams gold per tonne.

The QK zone carries 1.2 million tonnes at an average 4.6 grams gold per tonne, and the Pillow zone another 5.5 million tonnes at 2.8 grams per tonne. Main, QK, and Pillow zone resources are mainly near existing drifts on the old underground mine’s 330-metre and 560-metre levels. The decline, which extends to 785 metres below surface, and all the workings are currently flooded.

There are untested dip and strike extensions on several of the deep zones, which Pelangio plans to drill in a forthcoming program.

The estimate excluded a number of isolated or undeveloped mineralized blocks, as well as mineralization in pillars and other areas where mining might destabilize existing mine workings.

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