EXPLORATION 1997 — William Resources tackles Swedish and Finnish projects

Toronto-based William Resources (WIM-T) will soon begin a US$4-million program aimed at testing several gold properties in Sweden and Finland.

In December 1996, following its takeover of Swedish-based Terra Mining, William acquired several dozen exploration concessions in the two countries.

Included in the deal were 100% interests in the producing Bjorkdal and the advanced Barsele properties in northern Sweden, a 70.4% interest in the producing Pahtavaara property in northern Finland, and a 100% interest in the advanced Vasta property in southern Finland.

Concentrating on these four projects, William intends, by year-end, to have completed more than 40,000 metres of drilling, as well as geophysical surveying and trenching.

At the Bjorkdal property, the company will conduct 15,000 metres of reverse-circulation (RC) drilling and 2,500 metres of core drilling. The focus of the program will be to expand resources and reserves around the Bjorkdal open pit, to continue testing the Storheden zone (potentially minable by open-pit methods), 1 km to the north, and to test the area of intersection between these two zones. Attention will also be given to several other of the property’s known prospects.

Based on extensive stepout drilling northeast and southeast of the open pit, the northeast-striking Bjorkdal zone extends for a minimum 2.5 km in strike-length and 1.7 km in width. Mineralization has been intersected in drill holes to a depth of 300 metres and remains open in all directions.

Currently, the deposit hosts proven and probable reserves of 13.9 million tonnes grading 2.2 grams gold per tonne, or 983,000 contained ounces. In 1996, total production amounted to 86,200 oz. gold which is expected to increase beyond 100,000 oz. in the current and subsequent years.

In addition to lower-grade mineralization, the Bjorkdal target contains zones of higher-grade mineralization that extend for strike lengths of several hundred metres. The average grades for these zones are reported in the range of 4-5 grams gold over widths of up to 20 metres. However, one drill intersection from the pit returned an impressive 3.2 kg gold over a width of 2 metres.

Gold mineralization at the Bjorkdal mine occurs in a network of steeply dipping quartz veins in a granodiorite intrusive at, or near, the upper contact with limestone.

Displaying a similar style of mineralization, the east-southeast-striking Storheden zone has been outlined by widely spaced RC and diamond drilling over a minimum length of 600 metres and a width of up to 150 metres. Based on these dimensions, the zone averages 2.4 grams gold. Gold mineralization has been intersected by drilling down to a vertical depth of 100 metres.

Also similar to Bjorkdal, several holes drilled into the zone have intersected higher-grade material, including 15.5 grams gold over 13 metres.

Surface bedrock and till sampling also indicate that this higher-grade shear zone lies in a structure of lower-grade mineralization, measuring 150 metres wide by 1 km long, which is related to the zone outlined in drill core.

At last report, the Bjorkdal property contained total reserves (both proven and possible) and potential resources of 33.12 million tonnes averaging 2.78 grams gold, equivalent to 2.94 million oz. gold. The mineral inventory is contained in the two aforementioned zones, as well as in the separate Nylund zone, 500 metres southeast of the Bjorkdal pit, and the Quartz Mountain zone immediately south of the pit. Significant assay results from drilling of these two separate zones during 1996 include 86.5 grams over 3 metres and 36 grams over 2 metres.

About 200 km to the west lies the Barsele project, which hosts total reserves and potential resources of 17.61 million tonnes averaging 1.8 grams gold, equivalent to 1 million oz. Gold mineralization occurs within a granodiorite intrusive that ranges from 50 to 200 metres in width and extends for an east-west strike length of 8 km. The resource is potentially amenable to open-pit mining methods.

Within this intrusive, drilling has outlined four major areas of higher-grade mineralization in fine stockworks. The best result from these higher-grade zones returned 4 metres of 17.5 grams gold, with gold mineralization being associated with zones of quartz-calcite veining.

The company hopes to bring the Barsele project to production by the year 2000 and is proceeding with a full feasibility study. For the current year, it has allocated 10,000 metres for RC or diamond drilling to continue testing the deposit. William also plans to conduct an induced-polarization survey on the property.

At the Pahtavaara open-pit operation, an induced-polarization survey will be carried out in an effort to pinpoint targets for a 5,000-metre program of core drilling. The program will attempt to test the downdip extension of the deposit, which currently hosts proven and probable reserves of 1.8 million tonnes grading 3.06 grams gold. These reserves are contained in a total reserve and resource of 6.1 million tonnes averaging 3.15 grams gold, or 616,000 contained ounces. Since the start of commercial operations at the mine last July, more than 10,000 oz. gold have been produced at Pahtavaara.

In the current year, production is expected to reach 36,800 oz.

In addition to core drilling, 5,000 metres of RC drilling will test several gold-in-till anomalies west of the deposit, and one to the south. According to William, these anomalies have geochemical signatures similar to the original anomaly that was located over what is now the open pit.

Gold mineralization at the east-west-striking Pahtavaara zone is associated with quartz-barite vein zones up to 10 metres thick, which occur in a talc-chlorite alteration zone, which is probably a splay structure related to a major, east-west-trending shear zone. The alteration zone measures 100 metres wide and has a strike length of 400 metres; it is open to both the east and west. In 1996, drilling by Terra intersected the ore zone at a depth of 200 metres, where it remains open. Highlights from this drilling include: 13.62 grams gold over 3 metres, 7.43 grams gold over 10 metres and 6.66 grams over 6 metres.

Besides the outlining of the current resources at the Pahtaavaara mine, little drilling has been completed outside the planned pit area. As such, William considers its exploration potential to be excellent.

In addition to trenching, 5,000 metres of diamond drilling are planned for the Vatsa property. The program will follow up on previous widely spaced drilling by Terra, which outlined an extensive shear zone along a granodiorite-gabbro contact. Based on this work, total possible reserves within the zone are estimated at 1 million tonnes grading 1.73 grams gold, while potential resources stand at 4 million tonnes grading 1.73 grams gold.

As well as lower-grade material, higher-grade intersections are reported from the zone, including 6.5 grams gold over 7 metres. Mineralization occurs over a width ranging from 20 to 50 metres and extends for 800 metres along strike.

The zone remains open in all directions.