EXPLORATION ’95 — Producers continue to explore near

At a time when many Canadian companies are searching for mines in such exotic regions as South America, Africa and Asia, it is worth noting that most of these firms are continuing to explore in and around their existing operations in this country.

One such company that remains committed to Canadian exploration is Hemlo Gold Mines (TSE), which plans to spend about half of this year’s $15-million exploration budget on domestic projects. A significant portion of this total will be applied to ground near the company’s Golden Giant mine and Holloway project near Marathon, Ont., and Matheson, Ont., respectively. At Golden Giant, Hemlo has been attempting to gain a better understanding of the geology and genesis of the orebody. According to Ian Atkinson, vice-president of exploration, this work has led to the generation of a model of the deposit which is being applied to other areas nearby. Accordingly, Hemlo has increased its land holdings in the area and initiated grassroots exploration on several new projects, including Pic, Smoke Lake, Joa, Gowan, Valley, North Limb and Valley West. Results are not available, but Atkinson says Hemlo remains “encouraged by drill results, particularly on the Hemlo West and North Limb properties.”

In addition to surface exploration, Hemlo is exploring and developing the Block 4 and 5 targets underground at Golden Giant.

This long-term, research-based approach is also being used to acquire and evaluate properties in the Harker-Holloway and Timmins areas of northeastern Ontario.

Hemlo is the 85%-owner and operator of the Holloway joint venture, which is under development. Knowledge gleaned from exploration of this project is being applied to other nearby properties which Hemlo has joint-ventured. In the Harker-Holloway area, the company is operating a joint venture with Glimmer Resources (VSE) on the Hislop-Beatty property. Hemlo has completed eight phases of drilling on the property, which now has reserves of 1.2 million tonnes averaging 9.9 grams gold per tonne.

Meanwhile, the company is exploring properties around Kirkland Lake and Timmins. In the Kirkland Lake-Larder Lake camp, it is operating joint ventures on three properties held by Northfield Minerals (TSE). And in Timmins, Hemlo has entered into joint venture agreements with Glen Auden Resources (CDN) and Canadian Golden Dragon Resources (VSE) on their Sewell-Reeves property, as well as with Band-Ore Resources (CDN) on its Thunder Creek play.

Another gold producer, Goldcorp (TSE), has announced a 2-year, $10-million plan to carry out exploration and development at its Red Lake mine in Ontario’s Balmer Twp. The company will complete 39,000 metres of development drilling between surface and the 30 level. It will also perform 61,000 metres of exploration drilling between the 30 and 38 levels. Initial results from the exploration drilling indicate a strong continuity of the gold-bearing structures between the 30 and 34 levels.

While perhaps better known for its operations and exploration successes in Nevada and Chile, Barrick Gold (TSE) continues to operate mines in Canada. In addition to Macassa, Golden Patricia and Holt-McDermott in Ontario, the major owns the Bousquet complex and the Doyon mine along the Cadillac break in northwestern Quebec.

Barrick holds a large land position along the northern side of the structure and is carrying out exploration to test for mineralization in and around the Bousquet complex. The prime area of interest is a 2-km section which separates the No. 1 and No. 2 shafts of the Bousquet complex. Other targets include those found below current mining operations.

The search for gold continues at the company’s 50%-owned Doyon mine, with exploration focused on an area close to the shaft and along the 10-km section between Doyon and Bousquet.

Just east of Doyon, along the Cadillac break, Agnico-Eagle Mines (TSE) is progressing with exploration and development at its LaRonde division. The production shaft and No. 3 shaft are being deepened, and an exploration drift is being driven in order to gain access to eight zones. The company plans to spend $2.1 million on exploration this year.

At the Joutel mine near Val d’Or, Que., Agnico is completing a 7,000-metre drill program to test prospective ground between the 1,035-metre and 1,585-metre levels. Meanwhile, definition work is under way at the nearby Goldex division.

All told, Agnico plans to spend more than $85 million between 1994 and 1998. Turning to base metal projects, nickel-producer Inco (TSE) is making a push to develop reserves at its Sudbury deposits. The company will spend $230 million during the next three years to explore the Victor and McCreedy projects.

The work will consist of sinking a shaft to a depth of 1,765 metres and completing 1,675 metres of lateral development and 38,000 metres of exploration drilling to test the deposit to a depth of 2,700 metres. The cost of the exploration and development will be about $72 million. At present, copper and nickel mineralization is found within two zones, the upper at a depth of 1,525 metres and the lower at 2,100 metres. The upper zone has a mineral reserve of 5.4 million tonnes averaging 0.54% copper and 2.26% nickel, whereas the lower contains 6.4 million tonnes averaging 5.1% copper and 1.9% nickel, as well as 7.54 grams gold and platinum group metal values.

Inco will also spend $150 million to develop what it refers to as its largest proven and undeveloped nickel-copper deposit. All told, the East, West, Main and 153 orebodies are expected to yield 10,220 tonnes nickel and 35,227 tonnes copper.