Potential 2-million-ton deposit Freewest, Noranda discovery

Joint venture partners Freewest Resources (ME) and Noranda Exploration, a unit of Noranda (TSE), have reported more encouraging assay results from their gold project in Harker and Holloway twps., 70 miles east of Timmins, Ont.

Although still at the early exploration stage, The Northern Miner estimates that a gold deposit on the order of 2.5 million tons of grade 0.20 oz. gold per ton is shaping up. It lies at depths of nearly 1,500 ft. on the 6-claim property held 60/40 by Noranda and Freewest.

At those depths, an overall gold grade of 0.2 oz. or better would be needed, and the companies are encouraged by the fact that some recent results have yielded grades as high as 0.45 oz. gold over strong widths.

Adjoining the Noranda-Freewest claim group, immediately to the west, is a property held 60/40 by Noranda and junior joint venture partner Teddy Bear Valley Mines (COATS).

Significant drill results were reported recently from 11 holes completed in December by Noranda, operator of the Holloway joint venture.

The best assays from what is now being called the Lightning zone by Noranda, include 42.3 ft. grading 0.22 oz. gold per ton in hole 45, 17.7 ft. grading 0.34 oz. gold in hole 44, 13.1 ft. of 0.26 oz. gold in hole 42, and 49.2 ft. grading 0.18 oz. gold in hole 35.

“I think we’ve got a real winner here,” Freewest President Mackenzie Watson told The Northern Miner. “The deposit is still open at depth and along strike to the east.”

The diagram below represents a vertical projection (looking north) of significant drill results reported to date from the deposit.

So far, a 1,900-ft. strike length has been tested with the deepest hole put down to the 1,800 ft. horizon.

On the Teddy Bear property, which hosts the downdip extension of the Lightning zone, a recent hole (No. 36) cut 0.45 oz. gold over 9.8 ft. That intersection came 160 ft. below a previous result of 0.28 oz. gold over 41.4 ft.

All recent intersections on both properties were obtained at depths of 1,300-1,600 ft.

Exploration work is under way with two machines. They’re continuing to test the Lightning zone as part of a $425,000 program which will see at least anoth er 16,400 ft. drilled in 10 holes by spring.

A third drill rig will be added soon to probe along strike to the east.

Nearby, Noranda has an option on the Harker Twp. claims of Lightval Mines, the private sister company of Teddy Bear. The only other junior company with ground along strike to the east is Card Lake Resources (COATS), which has an option agreement with American Barrick (TSE). A 4,000-ft. drilling program is planned for that property.

Meanwhile, Noranda has moved to further consolidate its land position in the play. The senior company is optioning more ground in the camp through an agreement in principle with Canamax Resources (TSE) covering about 300 claims.

According to a Noranda geologist, the bulk of the reserves in the Lightning zone deposit occurs on the 6-claim Holloway property held jointly with Freewest. Some of the deposit’s downdip potential lies on adjoining ground to the west which was optioned by Noranda from Teddy Bear last year.

“It’s Noranda’s best exploration project in the Harker-Holloway area right now,” he said. “The drilling pattern is still pretty wide (300 ft. centres) for a gold deposit and we’ll have to tighten the spacing to confirm continuity.”

However, the deposit appears to have already shown remarkably good continuity although there are some significant structural complexities and faulting.

Geologically, the Lightning zone is associated with a contact between mafic and ultramafic rocks along a major regional deformation structure — the Destor Porcupine Fault. Dipping south at about 65-75 degrees , the zone is reported to contain pyrite in amounts ranging from 5% to 30%, with the best gold grades found close to the footwall ultramafic rocks.

“There certainly appears to be a substantial body of gold mineralization already outlined in the deposit,” said Teddy Bear President Andrew Chater. “Although this is still an exploration project, I feel confident it has got the potential to become a mine.”

Drilling done to date has closed off the deposit to the west on Teddy Bear’s ground, but it still remains open both to the east and at depth below 1,500 ft.

Shares of both Freewest and Teddy Bear have been firm of late with trading at $2.95 and $1.40 respectively. Noranda has an option to acquire another 540,000 shares of Freewest at $4 per share this year.