United Reef concentrating on Red Lake, U.S. gold camps (Head)

Active in Canadian exploration for the past 30 years, United Reef Petroleums (TSE) is continuing along the same path followed by its founder, the late J. H. (Joe) Hirshhorn of Blind River uranium fame.

Reorganized four years ago under new management, the company continues to hold a broad and widespread inventory of mineral properties in various stages of exploration and development. But it is currently concentrating on two gold projects for which management’s hopes are high — one in Ontario’s Red Lake camp and the other in Montana.

Last year the company raised approximately $3 million for its exploration ventures and anticipates raising a further $3 million of flow-through funding for its 1988 programs, Bernard MacIsaac, executive vice-president and chief operating officer, tells The Northern Miner.

Encouraged with the findings in a 20,000-ft drill program launched last fall at Red Lake, the company is commencing a new 40,000-ft program with two machines to delineate the most promising zones.

The Red Lake holdings consist of two groups under option from closely associated Canhorn Mining Corp. (TSE). The main one consists of 50 patented claims adjoining the Madsen mine on the west, a former substantial gold producer. Two new zones have been picked up here, both of which have been returning consistent commercial gold values, especially in the No 2 zone which occurs in an area of intense shearing and alteration and which is on strike of a zone on the former Aiken-Russet ground on which drilling in the 1940s outlined 70,000 tons grading 0.20 oz.

The other project on which a 40,000-ft drill program is also to be undertaken is in the Alder Gulch area of Montana and consists of 102 claims acquired last summer. This is under a joint venture agreement with Canhorn whereby that company can earn a 50% interest by putting up $1,350,000 — $750,000 for exploration and $600,000 for a private placement. This Alder Gulch camp has turned out some 2.6 million oz gold since 1860.

Work to date on this particular property has outlined six strong vein systems. Immediate plans are to concentrate on the Apex zone which has been exposed by trenching for 700 ft and is open at both ends. This averages 0.176 oz over a true width of 20 ft.

Bench scale tests are currently being conducted on this occurrence to confirm the suitability of heap leaching. The company has obtained what is known as a small miner’s permit and intends to initiate small-scale production this year.