Underground operations planned at MacMillan-Granges prospect

A $4.5-million preliminary budget, including $2.5 million for an underground decline to the 820-ft level, for the balance of 1987 and up to June 30, 1988, has been established for the MacMillan Energy- Granges Exploration joint-venture (50/50) project at Mishibishu Lake in northern Ontario.

In addition to the decline, a further 35,000 ft of drilling is proposed. Granges, as operator, is proposing 10,000 ft of surface drilling on the main zone, where underground operations are planned, and 15,000 ft of drilling in the area of an anomaly hole that encountered 8.9 ft of 0.17 oz gold per ton. The discovery drill hole is located about 3,280 ft west of the main zone.

A further 5,000 ft of drilling is proposed to test a recently discovered new zone where sampling of extensive outcrops yielded assays up to 1.6 oz, the joint venture reports. This area is located about 11,800 ft west of the main zone.

Granges also plans another 5,000 ft of drilling to test other areas on the 24,000-acre property. Included is an area in a region about five miles southeast of the discovery zone where an exploratory anomaly hole encountered 83 ft of 0.04 oz.

Granges has reported 148 holes totalling nearly 86,000 ft have been drilled to date under the company’s supervision. Seventy-one holes have been located on the main zone and 77 were drilled to investigate geophysical and geochemical targets on five grids.

The main zone currently is extended more than 980 ft and appears to be open to further development. The joint venture reports an enriched zone potentially averaging in the range of 0.2 oz is emerging, although assays are being recorded in the 0.03-oz range. The project is located 45 miles southeast of Hemlo, Ont.