Wide zones cut on Noranda-Akiko bet

Joint venture partners Noranda (TSE) and Akiko-Lori Gold Resources (VSE) have reported substantial widths of low-grade gold mineralization from a recently completed drill program on the Springpole property, 70 miles northeast of Red Lake, Ont. The two companies have an option to earn a 70% interest in the Springpole claims from Gold Fields Canadian Mining, which spent nearly $8 million on the property since 1985.

Noranda and Akiko-Lori face a hefty $750,000 option payment to Gold Fields next month if they elect to continue exploring the property. They have just completed 13 holes for a total of 11,430 ft. testing the property’s main gold deposit known as the Portage zone.

According to Noranda, diamond drilling was conducted over a strike length of about 2,600 ft. and to a depth of 700 ft. The Portage zone, originally outlined by Gold Fields prior to 1990, occurs beneath Springpole Lake and is hosted by highly altered and oxidized volcanic rocks.

The companies are hoping to prove up a sufficiently large tonnage of low-grade gold-bearing material that could be mined by open pit methods.

Typical of the wide intersections reported recently by the joint venture are 521 ft. grading 0.036 oz. gold per ton in hole 125, including intervals of 243.2 ft. averaging 0.05 oz., 50.9 ft. averaging 0.112 oz., and 119.0 ft. averaging 0.073 oz.

Highlights from some other significant wide intersections include 567.9 ft. of 0.031 oz. in hole 128, 442.9 ft. of 0.025 oz. in hole 126, 384.5 ft. of 0.034 oz. gold in hole 131, 334.6 ft. of 0.033 oz. in hole 129, and 289.4 ft. of 0.036 oz. in hole 127.

If the joint venture elects to continue with its option to explore the property, it can earn a 70% interest by spending $20 million by March 31, 1997. That interest will be shared 50/50 by Noranda and Akiko-Lori. About $600,000 has been spent so far on the first phase of drilling. Hemlo Gold Mines (TSE) is funding Noranda Exploration’s share of expenditures and will eventually earn one half of Noranda’s interest.

Akiko-Lori, whose shares have traded as high as $4.35 recently, is one of a number of junior exploration companies controlled by the Vancouver-based Prime Capital Corp.