Echo Bay To Develop Doc Property in Sulphurets Camp

A major work program under the direction of Echo Bay Mines (TSE) is under way at the Doc property near Stewart, B.C. Earlier this month, the major mining company was granted an option to earn a 50% working interest in the claims held equally by Magna Ventures (VSE) and Silver Princess Resources (VSE).

Ken Carter, Echo Bay’s newly appointed Canadian exploration director, said the project is the company’s first entry into the gold camps of northwestern British Columbia.

“We think this area has a lot of potential,” he said.

Edmonton-based Echo Bay recently opened a branch office in Vancouver; a move Carter said was made in order to “be more effective in exploration in Canada by being closer to the mining scene.”

Echo Bay can earn its interest in the gold-silver project by spending $8 million in exploration and development over the next three years. Upon delivery of a feasibility study for commercial production, it can also acquire a further 5% interest by making cash payments to Magna and Silver Princess.

The Doc property is located about eight miles from the Sulphurets camp where both the Newhawk/Granduc joint venture and Catear Resources have advanced projects. The ownership of the claims had been disputed for a time, but this was resolved earlier this year by arbitration when it was unanimously ruled that Magna had rightfully earned its 50% interest in the property.

Echo Bay’s work program will include 10,000 ft of diamond drilling and 800 ft of underground drifting on the Q17 vein which was outlined by Magna during previous work programs. “We’re going to concentrate on the one vein initially in order to get a feel for exactly what we have,” said Carter. According to Magna, at least four other parallel gold veins were also discovered and explored, all of which have yet to be systematically drilled.

Magna has estimated the mineral inventory of the Q17 vein (in all categories, uncut and undiluted) to be 207,000 tons grading 0.32 oz gold and 1.38 oz silver per ton open in all directions for expansion. Possible reserves in other veins were estimated by Magna to be 263,000 tons grading 0.23 oz gold and 1.25 oz silver, for a current mineral inventory totalling 470,000 tons grading 0.27 oz gold and 1.31 oz silver per ton. Some 1,235 ft of underground development was driven on the 1,160 level to access and test the Q17 vein.

Brad Cooke, a geologist and president of Magna Ventures, said that while the Doc project has some similarities to the nearby properties of Delaware, Skyline and Newhawk, he believes it has some important differences as well.

“The Doc veins are more traditional and easy to recognize,” he said. “They are simple, steeply dipping quartz vein sulphide systems hosted in greenstones.” Cooke said some preliminary metallurgical testing done during the forties showed recoveries of 95%.

While in general the Sulphurets area has poor accessibility, rugged terrain and harsh weather conditions, Echo Bay has considerable northern experience which should stand it in good stead. The company is now constructing a 40- man camp on site. A number of advanced projects are located nearby, and there is already some general talk of possibly re-opening the old Granduc tunnel and (if warranted) building a short access road to the Unuk river which is about 30 miles from tidewater in Alaska.