Northern Manitoba exploration activity continuing

In the Flin Flon-Snow Lake area of northern Manitoba exploration activity is continuing strong. In fact, it is the most actively explored greenstone belt in the province. The belt’s favorable geology and proximity to established infrastructure make it a prime target for exploration companies.

According to the Manitoba Department of Energy and Mines, some 53 base metal and 62 gold projects (50% of the provincial total) were carried out in the Flin Flon- Snow Lake belt during 1987.

Several junior exploration companies are busy exploring for both base and precious metals in the area. Among the more active junior explorers is Westfield Minerals (TSE). The company, together with its joint venture partner Goldbrae Developments (VSE) is spending $1.5 million to explore the Big Island copper-zinc property, located eight km east of Flin Flon.

This base and precious metals find was described by Manitoba Energy and Mines as the most promising discovery made in the province during 1987. The discovery hole intersected 12.4 metres grading 22.4% zinc, 0.58% copper, 0.17 oz gold per ton, and 2.73 oz silver per ton.

Westfield expects to earn a 70% interest in the project by the end of 1988. Potential to increase the existing small geological reserve of massive sulphides on the property remains excellent, the company says.

At Snow Lake, High River Resources (VSE) hopes to re-open the mine that started the town of Snow Lake. The company has an underground exploration program under way at the Snow Lake Mine. High River is earning a 60% interest in the project from Nor-Acme Gold Mines (TSE). High River Resources recently completed a private placement with Swicorp S.A. of Geneva, and Inco Gold for net proceeds of $1,440,800.

The exploration program at Snow Lake mine will consist of driving two cross cuts at the 1,780-ft level and 20,000 ft of diamond drilling to test the continuity of the orebody at depth. The first cross cut has been completed and drilling is under way. Results are expected to be announced shortly. Geological and drill-indicated reserves below the 1,780-ft level are estimated at 4.3 million tons grading 0.15 oz gold per ton.

High River owns 1,803,700 shares of Nor-Acme or 35% of Nor-Acme’s share capital on a fully diluted basis.

Nor-Acme Gold Mines also has properties under option to Varna Gold Inc. (ASE). These include the Button and Twin Lakes properties, located south of Flin Flon. Esso Minerals has options on three large Nor-Acme properties in the Fay- Syme Lakes, Aimee Lake and Blueberry Lake areas. Esso has performed geological and geophysical programs on these properties.

Pierce Mountain Resources (VSE) plans to spend $1 million this year to test drill targets on the Ferro Mines property south of Snow Lake, Man. The property has been mapped in preparation for drilling and visible gold has been encountered in surface samples at three different locations on the property. There is a 543-ft shaft on the property with three levels of underground drifting. Proven and probable reserves of some 73,000 tons grading 0.39 oz gold per ton are reported to exist in the old underground workings. Funding is coming from a private placement of flow-through units with Richardson Greenshields. Proceeds of up to $1,000,000 will be used in a planned 30,000-ft diamond drilling program to test extensions of the main ore zone which is open along strike and down dip.

International Thunderwood (VSE) is working on the Linda-McKayseff property located about 5 miles from the town of Snow Lake. This property contains 13 million tons of sub- economic massive sulphides that average 0.3% copper, 0.8% zinc, 0.3 oz silver, and 0.025 oz gold per ton. One high grade gold intersection encountered in the northwest portion of the property assay ed 436.5 oz gold over 0.3 feet.

On their property just north of Snow Lake, Snow Lake Mines Ltd. (a Silver Hart subsidiary) is conducting a pre-feasibility study to establish metallurgical and capital cost parameters involved in the mining of its deposit. The company hopes to bring the property into production in 1990. Reserves are estimated at 807,000 tons averaging 0.26 oz gold per ton.

Consolidated Callinan Flin-Flon Mines (VSE) has a 6.67% net profits interest in HudBay’s Callinan deposit which will be in production next year. Proven reserves for the Callinan deposit are 2.6 million tons averaging 1.5% copper, 4% zinc, plus 0.055 oz gold and 0.66 oz silver per ton. Planned production will be at a rate of 500,000 tons per year.