Report from Calgary Naneco plans heap leaching

Naneco Resources, as a result of 1986 exploration and development programs, is planning for commercial production from two heap- leach gold properties in the United States.

An extensive infill and development drilling program on the Johnson Gulch property in South Dakota confirmed the presence of an economic heap-leach gold deposit with reserves of 4.37 million tons grading 0.039 oz gold per ton.

Metallurgical studies on the mineralized material are being conducted to determine optimum crush size and leach solution strength. Application will be made this year for an on-site, heap-leach permit and an additional 100 percussion drill holes are proposed to enlarge upon the existing ore reserves.

In addition, deeper drilling is proposed in a search for orebodies in other geological horizons. In accordance with the present reserves, a 5-year mine life is forecast with a production of 22,500 oz gold per year.

The Longstreet mine property in Nevada is at a similar stage of development. The Main zone, which is open in several directions, has drill-indicated reserves of 6.35 million tons grading 0.034 oz gold and 0.51 oz silver. Metallurgical testing is being carried out at present. A mine life of six years is projected at a production rate of 28,900 oz gold and 255,000 oz silver per year.

A winter and spring geological program that will include extensive diamond drilling is being prepared for the Fat Lake area of the Northwest Territories by Borealis Exploration.

Consideration is being given to test mining by means of a ramp to the 25-m level. An exploratory scale mill will be constructed for processing. Mining and mill equipment will be transported to the Fat Lake area using the lakes as landing strips. Driving on the ramp will commence by the first of May and mining will start during the summer. Mill operations should begin by mid-September.

Snow Lake Mines has announced the discovery of a new gold-bearing trend, the Birch zone, at its Snow Lake property, located two miles from the town of Snow Lake, Man.

The Birch zone parallels the previously discovered No 3 zone which has proven reserves of 303,700 diluted tons averaging 0.32 oz gold per ton to a depth of 400 ft.

The Birch zone has been traced for a strike length of 1,000 ft. A 400-ft ore shoot in the central portion of the zone has been traced by diamond drilling to a depth of 600 ft. Drill results suggest the presence of at least 140,000 tons grading 0.528 oz over an average width of 6.5 ft.

This ore shoot is indicated open along strike and at depth. Drilling on the property continues with four drills on the site.

The Mets gold property in the Toodoggone gold camp of north- central British Columbia will be the target of an extensive evaluation program in 1987. Manson Creek Resources will explore the property in a 50/50 joint venture with Golden Rule Resources. A total of $1.1 million has been proposed and budgeted for the summer drill season, and a 10,000-ft diamond drill contract is being tendered.

The main thrust of the drilling program will be to determine the boundaries of the high grade gold mineralization discovered on the A zone last year. Additional drilling of other structures is also contemplated.

Reserves of 92,000 tons grading 0.33 oz gold per ton were outlined by drilling on the A zone. The structure hosting this mineralization extends for several thousand metres along strike.

Nortek Energy Corp., through its corporate restructuring and diversification program, has formed a wholly-owned subsidiary, Nortek Minerals, to take advantage of mineral exploration and development activities.

The main target area will be the extraction of gold and platinum from small- to medium-sized high grade deposits. The company is also considering involvement in sulphur and bentonite processing, as well as participation in a producing chromite mine in the Philippines.

Nortek has already become involved in the exploration and development of a gold property in the Kirkland Lake area of Ontario, where an estimated 160,000 oz of gold reserves have been indicated. In Ecuador, participation has been taken in the development and production of a large placer gold deposit.