EXPLORATION ’95 — Allegheny Mines active in northwestern

A former gold producer and three other properties west of Thunder Bay, Ont., are undergoing exploration by Allegheny Mines (ASE).

The contiguous properties comprise 23.5 square miles and are 5.5 miles from a major highway; they lie 20 miles east of Atikokan and 40-50 miles north of the Minnesota border.

Two of the properties, Olcott and Eagle, are part of the Contact zone, a shear structure which the junior believes extends for more than 6 miles. A third property is known as East End McCaul.

The fourth property, the former-producing Atiko-Sapawe mine of the Lindsay group, operated from 1963 to 1966. The company says the Lindsay mining property has a “mineral inventory” of 528,500 tons grading 0.31 oz. gold per ton (based on zero dilution and a minimum true width of 5 ft.). Drilling of the Olcott is confirming the geological reinterpretation of the structure in an area at the nose of a large fold. The structure remains open at depth and along strike.

Trenching at Olcott exposed a 30-ft.-wide zone of shearing and alteration. Hole 94-06, to a depth of 50 ft., cut 0.07 oz. over 17.5 ft., including a 5-ft. intercept of 0.23 oz. Hole 94-07, 50 ft. to the south and to a depth of 75 ft., intercepted 0.11 oz. over 15 ft., including a 5-ft. section of 0.23 oz.

Allegheny says it followed the structure last year at Eagle for more than 150 ft. by stripping; channel samples were encouraging. At East End McCaul, where a 30-to-50-ft.-wide zone was exposed, grab samples also proved encouraging. According to Allegheny records, the first gold discovery on the Lindsay property dates back to early this century. Surface drilling was undertaken in 1950 and 1961, and a reserve estimate of 138,000 tons grading 1.37 oz. was calculated.

A 3-compartment shaft was sunk to 550 ft. in 1961, and deepened to 1,015 ft. in 1964. Levels were established at 200-ft. levels. During the four years of operation, some 34,491 tons were milled and 4,547 oz. gold recovered. Some surface survey work was performed in the mid-1970s, and in 1979-80 a group was contracted to rehabilitate the shaft to the second level. The “mineral inventory” appearing above includes the main vein and parallel structures close to the main vein, but not a sulphide vein which returned high-grade assays at the deepest mine level.

The president of Allegheny is Georges La Fontaine. In mid-1994, the company hired Chester Kuryliw as its project chief consultant.