Some 28 juniors active in Nova Soctia exploration

Canada’s ocean playground is tiny — about the size of southern Ontario (55,500 sq km). But with a history of gold production dating back to the turn of the century it has not been overlooked by junior exploration companies in their fervor to find a gold mine.

Ever since flow-through share financing became popular in Canada, exploration expenditures have grown each year in Nova Scotia. An estimated $80-100 million will be spent this year.

A total of 28 junior companies are active in the province. All have shares trading on stock exchanges in other parts of Canada, in Montreal, Toronto and Calgary (the Maritimes has no stock exchange of its own).

For every publicly-listed company active in Nova Scotia there is also a private company pursuing the same goal. Together, these companies submitted some $26.7 million worth of assessment work to the provincial government in 1987, according to Patrick Phelan, director of mining engineering at the N.S. Department of Mines & Energy in Halifax. That’s three times more than was submitted in 1986.

Activity has been so brisk the province’s six diamond drilling companies chalked up footages totalling 760,000 last year. As might be expected, a full 90% of this was in probing for gold in the folded, faulted and metamorphosed sedimentary rocks of the Goldenville Group which dominate the geology of southeastern Nova Scotia.

Five such properties have advanced to the stage where drilling is, or is planned, from underground instead of from surface. They include:

* The Tangier property of Coxheath Gold Holdings (TSE) where production, at a rate of 250 tons per day, is expected to produce about 9,700 oz of the yellow metal by September 30. Proven reserves total 235,000 tons at 0.301 oz per ton.

* The Mooseland property of Acadia Mineral Ventures (TSE) which has been optioned to Hecla Mining Co. of Canada. Possible reserves here are about two million tons of 0.38-oz-per-ton material in two zones. (Since signing the deal with Acadia, Hecla has in turn optioned a part of its option to Biron Bay Resources (ASE).)

* The Cochrane Hill property, held by NovaGold Resources-controlled Northumberland Mines (both TSE) where three cross cuts are being driven at 500-ft intervals for bulk samples in yet another underground program, the third on this property.

* The former-producing Goldenville mine property, another Northumberland bet. That company recently arranged $2.8 million to finance work here and elsewhere. The old mine workings are now being dewatered to the 600-ft level.

* And the Beaverdam property, held by Western Mining of Australia, where proven reserves are 355,000 tons grading 0.337 oz gold per ton.

From surface sampling, NovaGold Resources is processing a 20,000-ton bulk sample from its property at Fifteen Mile Stream. Possible and probable reserves, calculated from 32 drill holes are 277,000 tons averaging 0.25 oz gold per ton.

The Northern Miner estimates four more properties in Nova Scotia will make the leap into advanced exploration this year. All are gold properties:

* The former-producing Dufferin mine being worked jointly by Novamin Inc. (TSE) and property holders Jascan Resources (ASE).

* Aquagold Resources’ (ASE) (formerly Torene Gold Exploration) property at Harrigan Cove where drill-indicated reserves stand at 105,000 tons at 0.35 oz per ton.

* The Ecum Secum property of Scotia Prime Resources (ASE).

* And the Leipsigate property of Coxheath Gold Holdings, which has potential for 423,000 tons at 0.34 oz per ton, according to the company.

Other juniors doing gold exploration work in Nova Scotia include: Seabright Explorations (TSE), New Brunswick-gold producer Gordex Minerals (TSE), Onitap Resources (TSE), Calgary-based Petromet Resources (TSE) and Toronto-based Greenstrike Gold Corp. (ASE).

Not all activity in the province is by juniors searching for gold. Inco Ltd. is examining a number of base metals prospects in Cape Breton and Falconbridge Ltd. holds a number of non-gold bets in the province.