Potential of west-coast deposits attracts Inco

The exploration arm of Inco (TSE) is taking on a greater presence in Western Canada through several recent agreements to joint venture properties considered prospective for volcanogenic massive sulphide deposits.

The joint ventures reflect only part of the company’s strategy to increase its exposure to base metal and polymetallic mining opportunities in Western North America, from Alaska to the Mexican border. But the western thrust still represents a small portion of Inco’s worldwide exploration effort which has been largely focused on properties at or near its primary metal mines in Ontario, Manitoba and Indonesia.

The Vancouver office is headed by A.T. (Terrence) MacGibbon, director of exploration for Western North America, who told The Northern Miner that the office’s shift to base metals reflects last year’s amalgamation of Inco Gold with TVX Gold. Pure-gold projects have been directed to TVX Gold, including the joint-ventured (with Seven Mile High Group) Vault gold project in British Columbia which is currently inactive.

Inco’s western expansion also reflects an effort to increase its exposure to the junior mining sector as well as to prospective geologic terrain with potential for world-class deposits.

“Western North America has some exceptional ore deposits such as Sullivan and Red Dog,” MacGibbon said. “We are confident that more base metal elephants are still waiting to be found here.”

Because of the recent transition from gold to base metals, much of the past year has been spent reviewing properties. “We looked at over 100 properties last year,” said Philip Rush, manager of exploration for Northwestern North America. “Our criteria were strict and we ended up joint venturing just two projects

in British Columbia, although others are still under consideration.” But Rush also points out that the exploration team is continuing to evaluate prospective terrain in British Columbia, the Yukon and Alaska, to generate its own projects, or to approach companies with properties in the targeted areas of interest. (Inco Exploration also has an office in Denver, where Mel Lahr manages exploration for southwestern North America, and field offices are located at Jardine, Montana, and Anchorage, Alaska.)

“Our best exploration successes historically have been with grassroots regional reconnaissance programs such as we are doing in the West,” MacGibbon said, adding that the exploration team is able to tap into research resources available at Inco’s Central Services group in Copper Cliff, Ont. MacGibbon points out that massive sulphides are not the only target of interest. “We

are also interested in porphyry copper-gold properties,” he said. So far, Inco has signed joint ventures with two separate juniors, Doromin Resources (VSE) and Atna Resources (VSE), both of which have massive sulphide projects on the coast of British Columbia.

Inco plans a spring and summer program on Doromin’s polymetallic Cimadoro project on the Queen Charlotte Islands, where the land position was recently expanded. The program will involve geophysical, geochemical and geological work aimed at confirming and outlining drill targets on this early stage massive sulphide prospect.

Inco’s agreement with Atna Resources allows it to earn a 60% joint venture interest in the Pitt Island volcanogenic massive sulphide property near Prince Rupert by spending $1.2 million. At earn-in, Inco and Atna will form a 60-40 joint venture.

The target is described by Atna as a polymetallic volcanogenic deposit similar to Westmin’s H-W deposit on Vancouver Island. Inco plans to begin exploring the property this spring.

Inco Exploration is also actively looking for base metal or polymetallic opportunities in Alaska, which the company considers “highly prospective and underexplored.” A special initiative called the “Alaska Task Force” has completed the first phase of a geologic review and study of Alaska and this work has outlined prospective terrain with potential for base metal and polymetallic deposits.

A number of projects are currently under consideration, and ongoing regional reconnaissance is also expected to generate grassroots exploration projects in areas that have been identified as prospective. The company has previous experience in Alaska, where it is still active on several gold properties in the Fairbanks district.

“We have also had good business dealings with the native groups in the state,” MacGibbon said. “They are excellent partners to work with.”