Reserve estimate boosted at disputed Brookbank bet

An Ontario gold deposit, currently the subject of a court battle involving Metalore Resources (TSE) and Ontex Resources, (ASE) may prove to be much larger than the two companies had anticipated. After recalculating reserves on the 18-claim Brookbank property, operator Placer Dome (TSE) says the deposit hosts a preliminary reserve estimate of 1.38 million tons of average grade (uncut) 0.26 oz. gold per ton, or 0.23 oz. (cut).

Back in January, Placer Dome, which is earning a 50% stake in the property, was estimating reserves of 654,812 tons with an average uncut grade of 0.27 oz.

The increase in potential reserves is due to new parameters, reflecting an increased understanding of the gold distribution and the spacial continuity of the deposit. It takes into consideration a change in the search radius, which increased to 100 ft. from 50 ft. and the addition of a second mineralized zone located 20 ft. to 70 ft. from the altered zone.

As the deposit is open below the 2,200-ft. level, as well as along strike, the potential exists for additional tonnage in the immediate vicinity of the known deposit, according to John Morganti, Placer Dome’s exploration manager for eastern Canada.

Since it agreed to spend $7 million at Brookbank in return for a 50% interest, Placer Dome has completed 35,000 ft. of drilling. But the second of a 3-phase exploration program has been delayed by a court trial that got under way Sept. 4.

In the lawsuit, Ontex alleges that Metalore withheld vital drill information compiled before Ontex agreed to reduce its stake in the property to a 10% carried interest from a 60% direct interest in 1983. Ontex, which once held 100% of Brookbank, is seeking the return of its original interest in the property. Metalore denies the allegations.