Nfld exploration activity high

Statistics for the first three quarters of 1989 stand at 15,921 new claims, and 67,219 claims in good standing, compared with the 1988 figures of 19,178 and 61,878 respectively. Exploration expenditures for 1989 are forecast to be in the $30-35 million range; down from the $41.1 million for 1988. Diamond drilling is forecast to be in the range of 100,000 m, off considerably from the whopping 234,831 m drilled in 1988 but a 25% improvement over the 81,000 drilled in 1987.

An increased proportion of the exploration effort in 1989 was directed to grassroots, regional and reconnaissance work.

The emphasis and effort in 1989 appear to be balanced between gold and base metals, with a smaller but growing interest in industrial minerals. Newfoundland has a long history of production of base metals while the understanding of gold environments and the success rate in prospecting for gold is a phenomenon that has developed during the 1980s.

The growing demand for industrial minerals and Newfoundland’s strategic location relative to North American and European markets and shipping lanes has prompted interest in this area.

Some of the highlights in exploration are outlined below.

— Noranda (TSE) is continuing exploration work on and in the area of its Duck Pond base metal deposit south of Millertown in central Newfoundland. Continued diamond drilling and feasibility and environmental studies were among the activities during 1989. Drill- indicated geological reserves stand at four million tonnes grading 3.5% copper, 6.6% zinc, 1.1% lead, 67.4 g silver and 1 g gold per tonne.

— Dolphin Explorations (TSE) is undertaking a $4.1-million program of drilling and underground exploration on its Cape Ray gold deposit. The 1989 program, which included the completion of a 20-km access road to the site, was to have been completed by the end of October with a feasibility study to be concluded in November. Geological drill-indicated reserves stand at 1,034,5 45 tonnes grading 8.7 g.

— Newfoundland Resources and Mining will complete construction work on its Lower Cove limestone aggregate operation during October. The company is in the process of commissioning their crushing and processing facility. The company is planning for an initial shipment of product to northeastern U.S. markets before year-end.

— Noranda Exploration and Noront Resources’ (TSE) Grubline joint venture has resulted in the discovery of a significant antimony zone and two strong gold bearing zones. The Hunan showing west of Gander has been traced in bedrock over a strike length of 200 m with economic values of antimony from four trenches over a distance of 70 m.

— The Corona Corp. (TSE) and Varna Gold (VSE) joint venture on the Pine Cove property near Mings Bight continues to return very encouraging drill results. At last report the Lightning zone has been tested by drilling over a strike length of 150 m to a maximum depth of 100 m.

— Equity Silver Mines (TSE) and Bitech Corp. (ASE) have geological reserves of 513,744 tonnes grading 13.13 g on their Nugget Pond property near Betts Cove on the Baie Verte peninsula. And underground exploration program to commence before the end of the year is being considered; that would be to determine the feasibility of a 300-tonne- per-day operation.

— Noranda and International Impala Resources (VSE) continued a program of trenching on the Stog’er Tight showing near Mings Bight. A small drilling program was completed in October. Some very impressive gold values have been returned from trenching and drill core in and around this showing.

— Aurion Minerals is developing its high purity marble deposit on the Great Northern Peninsula. Substantial development work has been under way during the year and the company now has a bulk sample ready for shipment to a European customer by year-end.

— Positive developments for the exploration scene include the opening of new exploration offices in the province by Corona; Teck Explorations, Westminer Canada and Cominco Ltd. in St. John’s; as well as a new regional office in Grand Falls by Noranda Exploration. New companies like Battle Mountain, Homestake Mining (Canada) and Canadian Giant Exploration have appeared. Also, several new Newfoundland-based junior resource companies have been formed.

In conclusion, exploration activity during 1989, although not at the same frantic pace as in 1988, was at a fairly healthy level. Junior mining companies generally conducted their activities at significantly reduced levels during 1989. This situation was in part offset by increased levels of activity on the part of major companies and companies new to the Newfoundland exploration scene.

The next few years are looking very good for the mineral industry in Newfoundland and Labrador. New industrial mineral operations coming on stream, a number of properties undergoing feasibility studies and a host of new and exciting prospects and showings auger well for the industry in the near future.

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