Tartan Lake cornerstone in Abermin’s growth plan

The goal of Abermin Corp. is to become a “major mining company by 1995,” Roger P. Taylor, president, told the annual meeting. He said the Tartan Lake project in northern Manitoba (N.M., June 8/87) “would be the cornerstone in the development of Abermin,” although the company had several other good properties with production potential.

Abermin has a 50% interest in Tartan which officially began production a few weeks ago. At 500 tonnes per day, the mining operation will generate about 43,000 oz gold per year, half of which would go to Abermin. At the mine opening, Mr Taylor told The Northern Miner the project would put the company “into a cash flow position” which at today’s gold price would amount to at least $4 million before tax. Although Granges Exploration is operator, Abermin participates in a management committee which, he said, “manages by consensus” with each partner providing input.

He said the mine was brought on stream quickly “thanks to the decisiveness of Granges,” while noting that Abermin has been providing its share of exploration costs but nothing yet for plant and equipment. Interestingly enough, the company doesn’t have to contribute any development capital until it receives a production notice or feasibility which is dependent on an ore development program on the 150-m level at Tartan. This should be completed any day now.

Work is under way at the Lara property on Vancouver Island where Abermin hopes to add sufficient reserves to justify an underground exploration program later this year. Several polymetallic zones have been outlined by drilling including the Coronation and Coronation East which have been traced over a strike length of some 5,000 ft and to a depth of 800 ft.

Two drill rigs are on the property and about 12,000 m of drilling is planned this season. The holes will be widely spaced and a high priority given to evaluating several good ip anomalies. The program will also test between the Coronation and Coronation Extension zones and along strike and down dip.

Last year, high grade massive sulphide ore with precious metals was discovered within the Coronation zone. By year-end, the mineralization had been traced over a strike length of 530 ft and it was still open at both ends. The high grade ore has an average thickness of 11 ft with a grade of 0.238 oz gold, 6.7 oz silver, 14.9% zinc, 3.1% lead and 1.5% copper.

A new sequence of rocks containing from 3-6 new polymetallic zones was discovered 7,000 ft to the north and parallel to the Coronation zone. This favorable sequence has been traced on surface over a distance of 8,000 ft and has been drilled on a limited basis. One-million-ton reserve

The two Coronation zones represent a geological reserve of approximately one million tons and they hope to at least double this in 1987. The zones are shallow and their configuration is amenable to low cost trackless mining techniques, the company notes. Abermin has a 65% interest in the property and Laramide Resources the remainder.

Abermin recently concluded an option agreement with Baca Minerals covering approximately one- half million acres of ground in the western United States. The Nevada properties are located in Elko Cty., a major gold producing area, and exploration will commence immediately. Mr Taylor said the checkerboard nature of the Nevada properties will give “Abermin access to far more prospective land than the 224,000 acres which it controls.

In south-central Colorado, Abermin will explore the 178,000- acre Baca land grant where several mines produced at the turn of the century. The production was from high grade veins but the area will now be tested for its bulk tonnage potential. Exploration is also planned on properties in B.C., Ontario, Manitoba and the Northwest Territories.