Yukon platinum target of All-North

In Canada, platinum group metals are produced as a by-product from nickel mining operations in the Sudbury basin. They generally occur in small concentrations and are not an important economic consideration for Inco and Falconbridge, the two main producers.

But for Vancouver-based All- North Resources, platinum and palladium are two potentially economic metals at its Wellgreen project 220 miles northwest of Whitehorse. Last year All-North and Chevron Minerals formed the Kluane Joint Venture to explore for platinum group metals in the southwest Yukon.

Incidentally, Chevron is operator for the Stillwater platinum- palladium mine in Montana and it also uses the metals in its refineries.

Their exploration efforts are being directed at a large ultramafic belt which includes the 92-claim Wellgreen property, currently under option from a subsidiary of Hudson Bay Mining and Smelting. So far, massive sulphide and disseminated mineralization have been outlined along 7,000 ft of strike length.

The Kluane joint venture can earn a 50% interest in the property for $1 million in exploration expenditures which should occur sometime this June. One of the attractions of the property is the platinum/palladium ratio (60/40) which, by Canadian standards, is quite unusual. In addition, other platinum group elements exist which could weigh favorably on the economics of the project, the companies point out.

The Wellgreen was brought into production in 1971 but the mine was closed after about 18 months of operation. Falling nickel prices, poor ground conditions and a lack of continuity to the massive sulphide ore deposits were some of the reasons for its closure, they note. Existing reserves now stand at 500,000 tons averaging 2.04% nickel, 1.42% copper and 0.038% cobalt in one of three mineralized zones.

Hudson Bay was aware that platinum values occurred in the sulphide deposits but more advanced assay techniques have demonstrated that PGM values are actually higher than previously thought — possibly by 20%-30%. The previous operator estimated the platinum and palladium grades at about 0.038 oz and 0.027 oz respectively.

The joint venture has reassayed many underground drill holes, particularly those completed in the footwall of the mineralization. Recent results from 15 holes drilled in the east zone from 1969-71 returned a weighted average of 0.71% nickel, 1.06% copper, 0.041 oz platinum and 0.039 oz palladium per ton over an average width of 30 ft. Composite samples are being assayed for rarer PGM elements.

The best values occur along a major fault structure where hydrothermal upgrading has also boosted the gold and silver content. The high grade mineralization occurs along the footwall of a gabbro dike five to 200 ft wide intruding the fault contact between a layered ultramafic complex and sedimentary rocks.

Recent exploration work has located high grade platinum values associated with low base metal content in the north zone which has never been explored in any detail, says All North. The discovery is said to be important because the values are away from the known zones of massive sulphide mineralization. One composite grab sample from disseminated sulphides in gabbro returned 1.29 oz PGM including 0.758 oz platinum and 0.496 palladium.

Seven properties in the joint venture were acquired by staking or option along a 100-mile stretch of the Kluane mountains. Four of these are connected by good road to the Alaska highway and the other three are within five miles of the roadway.

Pak-Man Resources and Rockridge Mining have farmed in to the west of Wellgreen and 2001 Resources Industries and Rockridge are involved in the eastern portion. Other companies have staked parts of the west and east extensions of the favorable geological horizon and a possible parallel structure to the north.