Sherrgold and MMR plan Manitoba exploration blitz

Exploration in the Lynn Lake, Man., area is expected to heat up this year following a concerted effort by SherrGold Inc. and Manitoba Mineral Resources to seek more joint venture partners. The two companies control the bulk of the geologically favorable land in the area, according to Eric W. Cunningham, manager of mineral resource development for Sherritt Gordon Mines, which controls SherrGold. A primary target area is the Rainbow iron formation trend — a 25-mile-long zone striking in an east-west direction. Near the western end of the trend, SherrGold operates the MacLellan gold mine, which is aiming at producing 60,000 oz of gold per year.

To the east, Manitoba Minerals and Farley Gold, a subsidiary of Inspiration Resources, control the Farley deposit. Hosting reserves of more than 700,000 tons grading 0.2 oz gold per ton, the deposit has excellent mine-making potential. This assessment is based on 50,000 ft of drilling completed by the partners over the past two years which has outlined the reserve to a depth of less than 300 ft. Widths are large, exceeding 70 ft in several holes. The east zone, which hosts most of the reserves, is amenable to open pit mining.

Mr Cunningham feels the 25 miles of poorly explored iron formation in between the MacLellan mine and the Farley deposit represents prime exploration ground for gold.

The other main target is the Johnson shear zone which also strikes for 25 miles parallel to and south of the Rainbow trend. SherrGold holds six properties covering 60 sq mi along the shear zone.

On the Wasekwan Lake property south of Lynn Lake, drilling in a subordinate shear to the main Johnson zone, has delineated one million tons grading 0.09 oz. Numerous other gold showings are associated with the shear, which warrant additional exploration, the companies say.