Total options properties near Douay project

Some exploration results reported recently from Vezza and Douay townships in northwestern Quebec have persuaded Vancouver-based oil and metals explorer Total Energold (TSE) to move into the region. According to Steve Parry, Total’s exploration manager, two volcanic sedimentary contacts trending east- west through Douay, Vezza and Noyon townships give rise to what he regards as high-quality exploration ground.

To test the theory, Total Energold has optioned three properties held by Jonpol Explorations (TSE), Perrex Resources (ASE), Northway Explorations (TSE), T & H Resources (TSE) and Cane (ASE). Consisting of 336 claims, they include the Northway property, estimated to cover the westward extension of a structure hosting Dundee- Palliser Resources (TSE) and North American Rare Metals’ (ME) Vezza Twp. gold deposit.

With reserves in the Vezza deposit now standing at 1.6 million tons of grade 0.17 oz. gold per ton, Agnico-Eagle Mines (TSE) is spending $7.4 million to earn a 51% stake in the Dundee-N.A. Rare claims.

The other two properties optioned by Total Energold are about five miles northeast of Douay Twp., where partners Inco, Cambior (TSE) and Societe d’Exploration Vior (TSE) reported a 59.3-ft. intersection averaging 0.23 oz. gold two months ago.

To earn a 60% stake in the properties, Total Energold must put up $1 million in option payments and spend $4.2 million on exploration by May, 1994. However, the company is reducing its risk by farming out 50% of its interest to Morrison Minerals (TSE), Total’s joint venture partner on a number of properties further west in Casa Berardi.

“There is a common element to the geology of all the properties,” Parry told The Northern Miner. “Gold mineralization is contained in quartz carbonate veins along a major structure which departs from a major volcanic sedimentary contact.”

Pending regulatory approval, Morrison is set to start a $500,000 program designed to drill test the Northway property’s RJ zone, which has already yielded a 16.8-ft. intersection averaging 0.25 oz. gold. Total Energold is a 69% owned subsidiary of energy giant Total Compagnie Francaise des Petroles.