Site investigation work, designed to help engineers choose an appropriate site for either a decline or a shaft has begun on the Estrades gold-zinc-copper-silver property in the Casa Berardi area of Quebec.
Vancouver-based Golden Group Exploration and Golden Hope Resources, which are financing the work, announced that $3.5 million will be spent over the next six months on a drilling program that will focus on the main ore zone — one of three identified on the property so far.
Altogether, the deposit has a geological reserve of 2.6 million tons. It strikes for a distance of about 2,600 ft and has been traced to a depth in excess of 1,600 ft. All three zones are open along strike and at depth.
The program will be managed by Teck Explorations which can earn a 50% interest in the property by completing a feasibility study and incurring expenditures after the study is complete. That amount must be equal to the amount which is spent up to the feasibility stage. Golden Group and Golden Hope would retain a 30% and 20% interest respectively.
Consisting of 6,000 m of diamond drilling and 45 reverse circulation holes in the glacial overburden, the program will expand and further delineate reserves in the main ore zone.
About 1.4 million tons, including a higher grade core of 980,000 tons averaging 0.18 oz gold per ton, 4.77 oz silver, 0.62% copper and 9.03% zinc have been indicated in the main zone so far.
The property is located 10 miles east of the Golden Pond mine being developed by Inco and Golden Knight Resources.
This particular phase of exploration work is in preparation for a production decision on the Estrades property. The program will extend into the first quarter of 1988.
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