Mine opening spurs exploration in Stewart-Sulphurets camps

Accessible by gravel road from Stewart, this $88 million open pit operation is expected to have an average annual output of about 77,000 oz gold and 890,000 oz silver in its first four years.

With diluted mineable reserves of 6.5 million tons grading 0.063 oz gold and 2.34 oz silver per ton at the Silbak Premier mine and 1.9 million tons of 0.091 oz gold and 0.67 oz silver from the Big Missouri (both former producers), the combined project has a 10.5 year mine life, with good potential for further reserves.

Immediately west of and adjacent to the Premier Gold mine, Star One Resources (VSE) is continuing exploration work on its 3,800-acre Mineral Hill straddling the B.C./Alaska border. The company said its 1988 work program identified over 20 different mineral bearing areas and confirmed the property’s “similarity in geology and style of mineralization” to the Premier Gold property.

Tenajon Resources (VSE) will continue as operator of work programs on its ac cessible and 50%- owned SB property located near Westmin’s Premier Gold project. According to Bruce McLeod, Tenajon’s project manager, the 1989 program will include a comprehensive surface drilling program to outline the Kansas and West Kansas zones with additional drilling to prove up reserves on the Facecut and 35 zones.

While Tenajon is planning additional underground work on the 35 zone where it encountered high grade values in gold, silver, copper, lead and zinc last season, it’s also looking to carry out an underground program this year on the Kansas zone after the surface drill program. McLeod said the Kansas and recently-discovered West Kansas zones contain high grade precious metal mineralization (predominately gold), unlike the Facecut and 35 zones which have significant base metal mineralization with the precious metals.

“The Kansas zone appears to be very extensive and is the most important target of the program,” said McLeod, who added that the company hopes to bring the project to the pre-feasibility stage by the end of its 1989 program.

In the past several months, an area to the east of Stewart has received considerable attention, particularly since Sierra Madre Resources (VSE) of the Prime Group optioned the Croesus property from Teuton Resources (VSE). Teuton has about 150-sq-mi of ground in the region acquired over time since the early eighties.

Previous work on the 11,000-acre Croesus property located 25 miles east of Stewart has indicated a potential for massive sulphide deposits. For example, chip sampling on the north side of a creek returned assays of 8.1% copper over a 14.8 ft width, while two zones of base and precious metals mineralization were discovered south of the same creek. A grab sample from the lead-zinc zone assayed 2.1% lead, 9.1% zinc, 1.45 oz silver and 0.020 oz gold; a second returned 1.9% lead, greater than 10% zinc, 1.58 oz silver and 0.052 oz gold.

A copper-gold zone was found some distance away and chip sampling across a 26.6 ft width of the zone averaged 8.7% copper, with one sample also running 0.658 oz gold across 8.9 ft. The 1989 program is aimed at identifying additional polymetallic volcanogenic mineralization.

Bond Gold (TSE) is also reported to be looking for similar targets on ground it has either acquired or staked in the immediate area.

Largely fueled by the availability of flow-through financings in recent years, an exploration boom has advanced to the less accessible Sulphurets camp, which represents the northward extension of the historic Stewart gold-silver mining camp known since the turn of the century.

Newhawk Gold Mines (TSE) is at the formal feasibility study stage with its 60%-owned Sulphurets project, a joint venture involving Granduc Mines (TSE) with a 40% interest. More geologically complex than originally believed, with less than ideal logistics, the project has reported reserves for the West Zone (all categories) of 854,072 tons grading 0.354 oz gold and 22.94 oz silver. In 1988, the company discovered the UTC zone by surface diamond drilling which may have additional reserve potential, as may other known mineralized systems still being explored during the summer seasons on the large 35-sq-mi property. Underground drilling is planned to further test the UTC zone which is located adjacent to the West zone.

Newhawk, owned about 41% by Corona Corp. (TSE), has awarded the feasibility study to Cominco Engineering which has considerable experience in the design and engineering of northern Canadian mines. The study is based on a proposed 300 to 400-ton-per-day operation and is expected to be completed shortly.

Catear Resources (VSE) has an extensive ground position in the Sulphurets camp although most of its recent efforts have been to develop its 100%-owned Goldwedge property which is completely surrounded by Newhawk’s Sulphurets property. The company has been operating a small 50-ton-per-day mill wh ich it plans to upgrade by the addition of flotation and other milling equipment. The Goldwedge project is reported to have 40,000 tons of proven ore reserves grading 0.825 oz gold, with reserves in all categories of 319,000 tons at 0.80 oz per ton.

Due west of the Brucejack Lake area in the Sulphurets camp (50 miles northwest of Stewart), Prime’s Sierra Madre has optioned Teuton Resources’ Max property which hosts the Max deposit reported to contain 12 million tons of iron- copper mineralization grading 45% iron and 0.75% copper. The 1989 program is aimed at evaluating the gold potential of the skarn-hosted deposit on the Max property.

Prospects and deposits with porphyry copper affinities and significant gold values received considerable attention in northwestern British Columbia, spurred no doubt by improving base metal prices.

In the Sulphurets camp, Western Canadian Mining Corp. (VSE) will be the operator of extensive exploration programs planned to establish proven and probable reserves at the recently-discovered Kerr porphyry copper-gold deposit. (Although northwestern British Columbia is well known for its copper potential, the project was discovered during a gold exploration program.)

This near surface, bulk tonnage project is 70%-owned by Sulphurets Gold Corp. (VSE). The partners have inferred reserves of some 66 million tons with an average grade of 0.86% copper and 0.01 oz gold. The ore forming minerals are chalcopyrite with lesser chalcocite, tennantite and bornite occurring as disseminations and veinlets in a quart pyrite-sericite schist. Controls to the mineralization are as yet poorly understood.

Echo Bay Mines (TSE) completed a $2.5-million work program late last year on the Doc gold property in the Sulphurets camp after optioning the property from Magna Ventures (VSE) and Silver Princess Resources (VSE). Of 32 holes drilled on the Q17 and other vein structures, 13 intersected high grade gold over narrow vein widths while others returned low grades or did not intersect vein material. For 1989, Echo plans a 2-phase surface exploration program to test other veins and anomalies on the 18,000-acre property, to be followed by diamond drilling contingent upon the success of the surface work.

Granges Exploration (TSE) plans to spend $1 million per year for the next three years on exploration of a vast 100,000-acre land package in the Sulphurets camp adjoining the Newhawk/Granduc project to the south and the Eskay Creek project in the north. Granges can earn a 50% interest from Cove Resources (VSE) and several associated companies acting as a syndicate. With Granges’ excellent track record in exploration to date, this large scale effort should be one to watch.

A number of Prime Group compan
ies are also active in the area, part of a vast 150,000-acre (and ever- increasing) land position in northwestern British Columbia. The companies collectively are expected to spend about $15 million on exploration in the 1989 season, about half the amount to be spent next year under the direction of Prime’s exploration arm, Prime Explorations.

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