Rio Algom cuts sulphides in fertile Bathurst camp

A new zone of massive sulphide mineralization has been intersected by Rio Algom (TSE) on Key Anacon Mines’ (TSE) property in the Bathurst camp of New Brunswick.

Significant results include: 18.62 metres of 2.77% zinc, 0.86% lead, 0.86% copper, and 33.19 grams silver per tonne in Hole 93-40 and 82.27 metres grading 3.38% zinc, 1.35% lead, 0.75% copper and 40.94 grams silver in Hole 93-42 (see table for further details).

The property, about 19 km southwest of Bathurst, was explored in the 1950s via a 1,500-ft. shaft. Anacon Lead Mines delineated minable reserves of 1.69 million tonnes grading 7.43% zinc, 3.03% lead, 0.2% copper and 91.6 grams silver in the Main zone.

The new zone, about 1.5 km east of the old mine workings, has been intersected in 16 holes, four of which contained no significant assay values. Oliver Bonham, Rio’s exploration manager for Eastern Canada, said the mineralization is typical for the camp, except for the high copper values. He believes the copper values represent stockwork-type mineralization which, to date, has been poorly recognized in the camp.

Rio, which optioned the property in January, 1992, can earn a 60% interest by making cash payments and spending $10 million on exploration prior to Dec. 31, 1996.

In November, 1992, two holes drilled below the Main zone also intersected encouraging base metal mineralization, with values up to 4.62% lead, 12.18% zinc and 123 grams silver per tonne across an estimated true width of 10.1 metres (T.N.M., Nov. 30/92). Anacon director David Jamieson told The Northern Miner that follow-up drilling to these holes has not been encouraging. If the new discovery proves economic, it should give a strong boost to the Bathurst economy which depends heavily on mining. Brunswick Mining & Smelting (TSE), a subsidiary of Noranda (TSE) is mining base metals from the Brunswick and Health Steele mines. At the end of 1992, proven reserves at the Brunswick mine totaled 50.4 million tonnes grading 9% zinc, 3.6% lead, 0.3% and 100 grams silver per tonne.

Anacon, which has 9.9 million shares outstanding, is 68% controlled by K.C. Irving & Irving. At presstime, trading of the stock had been suspended, but not before it hit $2.39 — up considerably from its previous 52-week high of 64 cents.

At this point, Rio has drilled 45 holes totaling 21,424 metres and drilling is continuing.

Summary of Key Anacon/Rio Algom drilling results

Bathurst Area

Hole Width Cu Pb Zn Ag

(m) % % % g/t

92-11 1.71 0.73 1.79 3.08 42.67

92-22 6.60 1.40 0.16 0.72 17.58

92-24 0.60 0.26 2.58 6.06 13.72

92-27 1.77 1.24 1.39 3.70 32.50

93-33 6.44 1.33 0.08 0.17 15.11

93-37 6.00 2.71 0.10 0.50 31.38

93-38 4.04 0.98 0.01 0.01 9.08

and 3.31 1.30 0.13 0.73 16.84

93-40 18.62 0.86 0.86 2.77 33.19

incl. 6.10 1.31 1.17 3.32 36.62

93-42 82.27 0.75 1.35 3.38 40.94

incl. 19.90 0.33 3.58 7.86 78.08

93-43 0.52 5.68 0.04 0.04 25.67

93-45 1.00 0.36 3.80 4.66 48.01

and 1.40 3.28 0.32 0.87 36.35

93-46 15.22 0.42 2.00 4.49 56.18

incl. 3.0 0.38 3.18 6.29 69.98