U.S. REPORT Bend project-Wisconsin NDU seeks partner for expensive

Vancouver-based NDU Resources (VSE) is seeking a major partner to finance its share of exploration and development on the Bend copper-gold deposit in Taylor Cty., northern Wisconsin. To date, NDU has drilled eight holes on Bend to follow up a 17-hole program completed by joint venture partner Chevron Resources in the late 1980s. Reserve estimates suggest the deposit hosts at least three million tons grading 0.12 oz. gold per ton and 1.8% copper to depths of close to 2,000 ft.

But when The Northern Miner dropped into the project office at the end of February, the Bend rigs were sitting idle as project operator and consultant E.K. Lehmann and Associates awaited further financing.

“We’ve slowed down on the drilling because the environmental costs are higher than we expected,” said Joe Sandburg, project geologist.

But at the same time, Sandburg expressed considerable excitement over the latest copper-gold intercepts, which were the widest ever to be pulled at Bend since its discovery in 1987. Hole 90-6 returned a true width of 69.5 ft. grading 2.46% copper and 0.038 oz. gold (T.N.M., Feb. 18/91).

Hosted by a quartz crystal tuff, the deposit consists of two near-vertical lenses — one gold-rich and one copper-rich. Based on the latest results, the copper-rich hangingwall zone, containing an estimated 1.79 million tons, averages 3.3% copper and 0.045 oz. gold. The gold-rich footwall zone, containing 1.7 million tons, averages 0.13 oz. gold and 0.37% copper.

Core from the most recent holes contains banded to completely massive sulphide mineralization, The Northern Miner observed. Pyrite, chalcopyrite and tetrahedrite are the main sulphide minerals. Gold is most frequently associated with tellurides, and occurs only occasionally in visible specks.

NDU acquired an option to earn a 54% interest in 23,700 acres of leased mineral rights, including Bend, by purchasing Wisconsin Mineral Resources last fall. The package also includes two other base metal deposits, Horseshoe and Ritchie Creek.

Under the option agreement, NDU agreed to spend a total of US$1 million on the properties before the end of March and another US$1.25 million by the end of 1995. Once NDU had increased its interest from 6% to 54%, Chevron Resources would be required to finance its 46% interest in the joint venture, or face dilution to 4.6%.

But NDU is finding it difficult to finance exploration in Wisconsin, where costs stemming from the state’s strict environmental regulations tend to add up quickly.

“We are looking for a major with a good operating track record and smelting capabilities,” said Robert Cathro, an NDU director. Presently, the closest smelter to the Bend project is Metall Mining’s (TSE) White Pine copper smelter in Michigan, several hundred kilometres to the north.

Meanwhile, E.K. Lehmann continues to develop a conceptual mining plan to satisfy both federal and state authorities. According to preliminary designs, the deposit would be reached through a 1,500-ft. production shaft and milled on site.

Sandburg would like to continue drilling at Bend until May, when the joint venture’s 8-year prospecting permit expires. He sees potential for updip extensions of the deposit and supergene enrichment close to surface.

The Bend project is one of several base and precious metal exploration programs ongoing along the 150-mile Proterozoic greenstone belt in northern Wisconsin, where Noranda is currently delineating a medium-sized zinc deposit.