Exploration gives life to Red Lake mine

The discovery of new reserves below current working levels at the Red Lake gold mine in northwestern Ontario has given the project new life.

Owner Goldcorp (TSE) has budgeted $10 million, including $6 million for its 1995-96 exploration program, for work at the property known formerly as the Arthur W. White mine.

Planned is a 200,000-ft. drilling program, with the main target being the 1,500 vertical ft. between the 30 and 40 levels. Five drills are currently working the 30, 34 and 38 levels.

“I think the old girl still has lots of life,” R.E. (Dutch) Van Tassell, vice-president exploration, told The Northern Miner in an interview. The mine, in operation since 1948, has turned out more than 3 million oz. It is one of two producing properties in the Red Lake camp, the other being the larger, higher-grade Campbell mine of Placer Dome (TSE).

Chairman Robert McEwen said the mine “has been starved of capital for 10 to 15 years.” The amalgamation of Goldcorp and Dickenson Mines in 1994, he said, resulted in a company capable of funding this exploration effort. The mine yielded 65,600 oz. in 1994 at a cash operating cost of US$325 per oz. Reserves currently stand at about 3.3 million tons grading in the range of 0.3 oz. gold per ton.

In addition to helping boost production, the new reserves should significantly alter the mine’s cost structure, McEwen said.

The mine is served by a shaft to the 24 level (3,500 ft.) and a winze which extends to the 40 level (6,000 ft.) Despite the sinking of the winze to a depth of 6,000 ft., the property was never previously explored below the 30 level (4,500 ft.).

On the 30 level, a drift, which began in 1993, is being extended eastwards. A parallel drift will be cut at that level for drilling purposes. In addition to drilling at the 30, 34 and 38 levels, the current program includes some surface exploration work north of the shaft.

Past development at the mine encountered sulphide ore below the 21 level and, according to Van Tassell, it was thought that this type of ore would continue deeper. In fact, drilling from the 34 level has uncovered (in addition to a 600-vertical-ft. extension of two known ore zones) a mineralized quartz carbonate structure which has returned encouraging assays over a 400-ft. dip length (T.N.M., April 10/95).

“The biggest surprise is that we would see this type of structure at this depth,” Van Tassell said.

The indication is that the quartz carbonate host is similar to mineralized zones at the neighboring Campbell mine. However, McEwen said the plunge of the Red Lake zone appears to be in a different direction from that of the Campbell mine.

While it works to prove up new tonnage at its Red Lake operation, Goldcorp is also casting a hopeful eye at its large land position (21,515 acres) surrounding the mine as a potential source of new reserves.