Kingswood busy in Casa Berardi area

Toronto-based Kingswood Explorations (ASE) is increasing its land position around a small base metal deposit in La Gauchetierre Twp., 23 miles west of Matagami, Que. Subject to regulatory approval, the company has acquired a 100% interest in two key claims contiguous to a known polymetallic deposit with preliminary reserves of 1.7 million tons grading 4.5% zinc, 0.84% copper and 0.48 oz. silver per ton. The portal of an old ramp, collared to reach the sulphide deposit, is situated on the two claims.

Kingswood already has interests in another 711 claims surrounding the Gauchetierre Twp. deposit, which is owned 100% by Noranda (TSE), subject to an underlying interest to Phelps Dodge Corp. of Canada, a unit of Phelps Dodge (NYSE).

Title to the deposit is currently before the Quebec courts, and Kingswood has also acquired the interest of the other party in that dispute.

Meanwhile, a recently completed 17-hole drill program on Kingswood’s Casa Berardi project in northwestern Quebec has failed to detect any economic gold intersections.

The 10,015-ft. program tested three geophysical (IP) anomalies over a distance of roughly 10,000 ft. in Lanoullier and Gaudet twps., Que. Kingswood says all the holes intersected major widths (up to 85 ft.) of highly altered and silicified rocks containing pyrite and ankerite, but no ore-grade gold values were found.

Three of the holes intersected brecciated sulphide iron formation associated with wide bands of ankerite and weakly anomalous gold values below 0.01 oz. gold per ton. The zone lies along a contact between mafic volcanic rocks to the north and a granodiorite intrusive to the south. One final deep hole is being drilled to test a depth of 1,000 ft. below surface in an area of strong pyrite mineralization.

A follow-up 30,000-ft. drill program at a cost of $1 million has been recommended for the next phase of exploration work. During February and March, Kingswood added 375 claims to its existing property holdings in Lanoullier and Gaudet twps.

Other recent corporate developments include the appointment of two new members — Charles Howard and Lawrence Papernick — to the company’s board of directors. A report on Kingswood’s Matheson, Ont., and Val d’Or, Que., projects is expected later this month.