Omenica holdings make Major General significant landholder

In less than three years since its humble beginnings as a one property, private company, Major General Resources (VSE) is now one of the largest property owners in B.C’s promising Omineca porphyry copper-gold belt and a major player in northwestern Ontario. It was only recently, in early 1990 that the company became listed. Major General, based in Vancouver, has interests in 43 properties across Canada, including significant mineral inventories at the Rendell-Jackman joint venture gold project in Newfoundland; the wholly-owned Dorothy Lake gold project at Pickle Lake in northwestern Ontario; and the Tam porphyry copper-gold project in northern B.C., optioned to Varitech Resources (VSE).

Through luck and determination, Major General achieved a major breakthrough last April, 1990, with its acquisition of the UMEX exploration database for $500,000 cash and a 2.5% net smelter return on each of the properties.

Included in the US$11.7-million package was UMEX’s portfolio of 32 Canadian properties which comprise about 85,000 acres. Over 70% are located in the Pickle Lake mining camp including Dorothy Lake, the most advanced project. Major General must also spend $5 million on exploration over the next five years.

Compiled from the late 1960s to 1988 at a cost of $9.3 million, the extensive database documents unreleased regional exploration programs and 27,000 metres of drill core.

To facilitate a staking/property acquisition campaign this past year in north central B.C., the company also formed the Hogem and Takla Joint Venture projects. As a result the company now has an interest in 14 additional claim groups totalling 149 square miles within the Omineca belt.

In 1990, Major General focused most of its exploration activity on three projects in eastern Canada. A total of over $1.5 million was spent on exploration of Rendell-Jackman, Dorothy Lake and the wholly-owned Blondin project near Birch Lake in northwestern Ontario.

Preliminary economic studies are underway at the Rendell-Jackman property in Newfoundland. Operator and 50% owner Noranda(TSE) completed a $710,000 diamond drilling program on the Hammer Down gold zone last August; Noranda contributed an additional $135,000. Drilling outlined preliminary reserves of 430,000 tons averaging 0.34 ounces per ton gold cut and 0.57 ounces gold uncut.

The seven-hole, 2,189-foot drill program indicated a cut off of the shear zone hosting the main Hammer Down zone to the east and to depth. The shear zone appears to be continuous between the Hammer Down and Muddy Shag zones, and is open to depth to the west. Approximately 400 metres of the 1,200-metre-long zone have been tested with widely-spaced drilling.

Over $250,000 was spent on diamond drilling and geophysical surveys at Dorothy Lake last year. Dorothy Lake is adjacent to Bond Gold Canada’s Golden Patricia mine and astride the same regional structure.

In July last year, Major General completed a seven-hole drill program totalling 2,064 metres, designed to test the Main zone to a depth of 200 metres over a strike length of 550 metres. Assay results included one intersection of 472.6 grams per ton (13.8 oz. gold per ton) over 0.5 metres.

Geophysical work outlined five new conductors in the southeastern portion of Dorothy Lake, one of which is within a kilometre of Bond Gold’s new Tonsil Lake gold discovery.

Encouraged by last year’s results, the company plans a $300,000 follow-up exploration program on the property this summer.

Five conductors were outlined last year in a $100,000 prospecting, mapping, and geophysical exploration program on the Blondin Lake property, near Noranda and Akiko-Lori’s(VSE) Springpole project in northwestern Ontario. The property is being evaluated for gold and base metals in massive sulphides.

A $340,000 13-hole winter drill program totalling 2,418 metres was completed by mid-February this year at three wholly-owned gold and base metals properties in the Pickle Lake camp in Ontario. Drilling results are being evaluated from the Meen Lake, McVean Lake, and First Loon Lake claim groups.

In B.C.’s Omineca belt, Varitech Resources is earning a 50% interest in the Tam project and spent over $225,000 last year on an exploration and core sampling program. Based on 1975 drilling results, Tam’s preliminary reserves on the Boundary deposit are estimated at 7.2 million tons of 0.55% copper plus silver credits.

Encouraged by the presence of gold in re-assayed core and in two of four large soil geochemical anomalies discovered outside the Boundary deposit, Varitech plans a first phase $250,000 diamond drilling program in the second quarter of 1991.

Lectus Developments (VSE), which is earning interests in eight Omineca belt properties optioned from Major General and the Takla Joint Venture, is committed to spending about $400,000 on the properties in 1991.