U.S. Midwest, Appalachian districts attract Noranda

Until the Lynne discovery was announced last spring, Noranda’s (TSE) substantial exploration efforts in the Midwest and Appalachian districts of the U.S. were unfamiliar to most Canadians. But, as the The Northern Miner recently learned, Noranda is actively engaged in over 20 grassroots projects scattered across the northern Midwest and in the Appalachian Mountains of North and South Carolina.

According to Noranda officials, exploration out of the company’s regional office in Rhinelander, Wis., which covers the Midwest and Appalachian projects, has been increasing over the past five years. In 1990, Rhinelander’s exploration expenditures reached $6.8 million, almost half of Noranda’s budget for the United States.

At the top of Noranda’s priority list is the Lynne project in Wisconsin, which raised a stir last June when the company announced a 128-ft. intersection averaging 22.7% zinc and 0.64% copper in its first hole. Although Noranda has kept an office in Rhinelander for the past 18 years, and has spent about US$8 million on exploration in the area, the Lynne property was snapped up just recently at a county land auction.

In 1991, Noranda plans to spend $2-3 million on the Lynne project. During freeze-up, company geologists will be able to test the prospective eastern side of the project area. Access to the east has so far been limited by laws governing exploration on Wisconsin’s sensitive wetlands.

Meanwhile, several other companies are moving into the area. Most recently, Moss-Power Resources (TSE) teamed up with Noranda to earn a 50% interest in over three joint venture properties. Once Moss-Power has completed a $2 million financing for exploration, work will begin on the Reef project, which hosts a preliminary reserve of 454,000 tons grading 0.26 oz. gold per ton and 0.28% copper.

All this activity is focused on a Proterozoic greenstone, known as the Rhinelander-Ladysmith belt, which stretches from east to west across northeastern Wisconsin. The belt is host to a number of well- developed base metal deposits including Kennecott Corp.’s Flambeau and Exxon’s Crandon.

Further north in neighboring Minnesota, Noranda is tapping the potential of a greenstone belt remarkably similar those stretching across northwestern Ontario. Although Noranda currently has about half a dozen projects on the go, the sheer lack of discoveries in Minnesota over the past few years has been somewhat of a deterrent to exploration, says Glen Adams, district geologist for the Rhinelander office.

Gold is Noranda’s main target, adds Adams, although an extensive blanket of thick overburden has always frustrated gold explorationists in the state. Base metal exploration is discouraged by a 6% net smelter royalty payable to the state government.

To the south and west, several promising gold projects are currently held up by a 2-year moratorium on new mine development in South Dakota. Although the moratorium does not extend to exploration activity, Noranda’s senior management is not anxious to sink money into the Black Hills area for fear of further environmental action.

“We have critically cut back on exploration in South Dakota,” says Adams. He notes that Noranda is doing only what is required to keep their land holdings in good standing.

Searching for Homestake-style lode gold deposits in the area for about five years, Noranda has recently focused on two projects, the Cochrane and Bobcat near Rochford, S.D.

In the “Slate Belt” of North Carolina, a mix of sediments and volcanics, Noranda has several active gold projects, Adams says. As a whole, the Carolinas play host to about 10 of Noranda’s Appalachian exploration programs. One base metal project is ongoing in New York.

Asked to rank the Midwest- Appalachian projects in terms of potential, Adams feels the Rhinelander-Ladysmith belt holds the greatest promise for future base metal discoveries. He is also excited about the potential for Ridgeway-style, disseminated gold deposits in North Carolina, where the company has been working for the past four years.