More production likely at Harker Holloway gold camp

Until American Barrick Resources (TSE) opened its Holt-McDermott gold mine in an extravagant ceremony recently, Ontario’s Harker- Holloway area hadn’t seen a new mine for as long as any of the guests at the opening ceremony could remember.

Located in a 10×6-mile area just south of the famous Porcupine Destor Fault, one of Ontario’s busiest exploration camps has lagged well behind the Timmins and Hemlo regions in terms of bringing new mines on stream.

But if the first mine in at least 25 years has whetted the local population’s appetite for more opening ceremonies, they may not have long to wait.

Canamax Resources (TSE) recently began shipping ore from its nearby Matheson East mine site and a number of other promising projects in the region suggest that Harker-Holloway could well become a significant contributor to Canada’s gold inventory.

“Many gold showings have been found along a 20-mile strike length and the chances of finding other mines is excellent,” said Gilles Tousignant, Barrick’s regional exploration manager.

As soon as it can iron out an agreement with Lenora Explorations (TSE), American Barrick is expected to begin mining ore from the Worvest claims which cover the western strike extension of the Holt-McDermott orebody. Lenora property

Owned jointly by Barrick 65% and Lenora 35%, the property hosts about 810,000 tons of grade 0.143 oz gold per ton at a 0.08 cut off. According to Lenora President, Robert Kasner, Barrick needs the Worvest ore to fill vacant capacity at its 1,500 tons per day mill.

With three exploration projects under way at Harker-Holloway, Lenora is the camp’s biggest land holder. In a joint venture with Barrick, Lenora also holds a 35% interest in the Three Star claims which Barrick will mine (with Worvest) by drifting 3,000 ft from Holt-McDermott.

Lenora also holds a 100% interest in the 7,000-acre Golden Harker property where drill-indicated reserves stand at 500,000 tons grading 0.16 oz gold. Mineable reserves at Golden Harker stand at 270,000 tons of 0.19 oz and when Lenora can reach an agreement with Barrick, production from the property is expected to begin.

So far this year Lenora has spent $6.6 million on Golden Harker to extend the ramp from 375 ft to 500 ft and complete 10,025 ft of diamond drilling. No more drilling is planned until February.

Lenora’s other Harker-Holloway project is a 50/50 joint venture with Canico (International Nickel Co.). Located on the eastern boundary of the Golden Harker claims, the property contains rhyolite which may have some large tonnage/low grade potential. Bulk sample

Future plans for the Canico property include the extraction of a large bulk sample, said Lenora’s regional exploration manager Wayne Penno.

Meanwhile, Alberta Gold Exploration (ASE) (55%) and Perrex Resources (ASE) (45%) are gearing up to spend $3 million on the Iris claims where a reserve inventory of 600,000 tons grading 0.2 oz of gold equivalent would be sufficient to warrant a production decision.

The bulk of the Iris reserves — 348,293 tons of grade 0.09 oz — are contained in the P zone. But project geologist Don Hawke said the partners are currently drill-testing a seven-million-ton block of mineralization on the B zone which may form the basis of an open pit. It hosts both gold and tungsten and previous drilling has intersected 13.5 ft of 0.2 oz gold. The tungsten element is important because the partners are planning to factor it into their P zone reserve calculations.

Back on American Barrick’s Holt-McDermott property where annual gold production is expected to be about 80,000 oz, the company is attempting to add to its reserve inventory by drilling a number of properties nearby. Optioned properties

Currently under option are the Union Mining, Independent Mining and Simms properties which are located about five miles southwest of the Holt-McDermott mine site. While drills have probed all of the optioned properties, Tousignant said results haven’t been made available yet.

Canamax has also attempted to expand the Matheson East operation (where 8,000 oz gold should be produced this year) through a surface exploration program. It is designed to evaluate other targets along strike from the property’s upper and lower shoots.

Southeast of the Matheson mine, at the Mattawasaga zone, some 56,600 ft of diamond drilling has identified a wide, roughly east/west striking zone of gold mineralization, Canamax says.

The zone is comprised of four assay horizons with a strike length of about 2,600 ft, said Canamax. The company has earmarked $400,000 this year for additional exploration.

At wholly-owned Guibord Twp. property located nearby, Jascan Resources (TSE) is planning a 5,000-ft to 10,000-ft drilling as a follow-up to previous work. Although no economic mineralization was encountered previously, the company says it has been able to confirm the presence of an assemblage of metavolcanic and metasedimentary rocks which are known to host several deposits in the area. Garrison venture

While it is located about 10 miles west of the Harker-Holloway camp, the Jonpol Explorations (TSE), T and H Resources (TSE) joint venture at Garrison Twp., has garnered a lot of attention recently.

After a 90,000-ft drill program was completed recently, Lac Minerals (TSE) is currently reviewing the data before deciding whether to spend $1.5 million and later $5 million on additional exploration.

It is too early to say what Lac’s decision will be but 1.3 million tons of grade 0.231 oz gold of drill- indicated reserves have already been blocked out and if a production decision is ever made, ore could be shipped to Lac’s Macassa mill in Kirkland Lake.

Under an agreement, Lac can earn a 50% interest in all of Jonpol’s Garrison properties which comprise nine patented mining claims.