Inco to spend $4.6 m at old Cochenour bet

Plans for a $4.6-million underground exploration program at the Cochenour-Willans gold mine property near Red Lake, Ont., were finally revealed by Inco Gold recently. Inco Gold, a unit of Inco (TSE), holds a 50% stake in a syndicate that is attempting to bring the former high-grade gold producer back into production. Wilanour Resources (TSE), with 30%, Pronto Explorations (TSE) with 12.5% and Pronto President Robert Faskin with 7.5% are the other partners in the project.

Inco, having already spent $4 million at the property, has outlined potential reserves of about 1.25 million tons grading 0.25 oz. gold per ton. But bulk sampling is necessary because of the nugget- like nature of the Cochenour gold mineralization.

Over the next 12 months, Inco will extract a 7,500-ton bulk sample and conduct 30,000-ft. of diamond drilling in a bid to confirm sufficient ore reserves to sustain a mining operation.

According to Inco, five drifts will be driven on the 1,675-, 1,800-, 2,050- and 2,200-ft. levels and two raises to extract a bulk sample that is expected to have an average grade of 0.3 oz. gold per ton.

Inco plans to use the drill portion of the program to define known mineralized zones and explore for extensions of those zones. The company is also planning to conduct geophysical surveys and surface diamond drilling on identified zones from the adjacent Wilmar property between surface and the mine’s 1,300-ft. level.

A 1991 production decision, which could follow if the program is successful, would be regarded as a significant achievement as a number of companies have already tried and failed to bring the old mine back on stream.