Some of Canada’s best gold exploration projects

There are more than 100 advanced gold exploration projects in Canada today. The editors of The Northern Miner have tried to select some of the most promising gold exploration plays as the 1988 field season wraps up. There are several other projects that have received an official production decision from the companies involved and therefore are not included here. This list also focuses only on the project and does not take into other factors such as management’s abilities or the likelihood of financing the project. Cape Spencer, N.B.

All the technical information on this project of Gordex Minerals (TSE) points to a sizeable, new type of gold deposit for the Maritimes. It is interesting on the strength of the technical interpretation by Derry, Michener, Booth & Wahl, of limited drill hole results and on the strength of Cambior’s interest in the property. Still, at this stage, it is very risky. This property is north of Gordex’s producing Cape Spencer gold mine. Cape Ray

Confident it has a winner in its Cape Ray gold project in southwestern Newfoundland, Dolphin Explorations (TSE) recently announced it would spend an additional $3 million this year on exploration work there, bringing the total 1988 budget for the property to $5 million. Last year the junior, 44% owned by Corona Corp. (TSE), spent $6 million on surface drilling and underground work. Current reserves (probable and possible) at Cape Ray stand at 1.14 million tons grading 0.28 oz gold per ton (based on a minimum mining width of 5 ft and a cutoff grade of 0.15 oz gold per ton). Company officials expect a feasibility study for the project will get under way during the first quarter of 1989. Colomac

Although details of a $90-million bank loan from a number of sources led by Bank of America are not public yet, directors of Neptune Resources (TSE) are confident they will have the capital to put the Colomac gold deposit, north of Yellowknife, N.W.T., into production sometime next year. Mine engineers with open pit mining skills honed at Cominco’s (TSE) now-closed Pine Point mine, combined with a wealth of gold milling expertise developed at the metallurgical consulting firm Witteck Developments, gives Neptune the technical strengths for making this deposit, overlooked by some of the best in the industry, into the largest single new gold producer in Canada at 200,000 oz per year. Proven and probable reserves on one of three known zones come to about 16 million tons averaging 0.064 oz gold per ton. Eagle River

VSE-listed Central Crude Ltd. has attracted a lot of attention over its Mishibishu play, not the least of which has been the participation through an equity interest and a property position by Hemlo Gold Inc. Exploration has yielded more than a few spectacular intersections (36.2 ft of 0.22 oz gold per ton and 21.7 ft of 0.49 oz). And it seems that the ore-bearing zone is continuous along an impressive 5,600 ft. More drilling is required yet to further define the deposit, but its seems the property has started the adrenalin flowing for Hemlo Gold’s senior explorationists. Eastmain

What do we like about Eastmain? Its grade. Hosting reserves in excess of one million tons, grade averages 0.45 oz gold per ton. Drilling during the year has returned such rich sections as 29.4 ft assaying 1.79 oz gold and 11.9 ft grading 1.81 oz gold per ton. Although rich in grade, the deposit’s remote location east of James Bay in northwestern Quebec will add considerably to development costs. MSV Resources (ME), which holds a 49% interest, is buying the remaining 51% interest from Placer Dome Inc. (TSE) for $5.2 million. First Canadian

Aur Resources, (TSE) the Toronto-based junior developing this project, recently secured a 15,000-oz gold loan worth $8-million even though it already had $23 million in its coffers. That indicates the confidence it and the lender have in Aur’s First Canadian property near Val d’Or, Que., where Aur is set to start production from the Kierens zone at an initial annual production rate of 24,000 oz. Fork Lakes

Probably the most exciting gold discovery in Saskatchewan in 1987, Fork Lakes is characterized by exceptionally high grades. Discovered by Saskatchewan Mining Development Corp. geologists, the find is a typical quartz-filled shear zone associated gold deposit. Located near La Ronge, Fork Lakes is in the underground exploration stage. Driving of a decline ramp is in progress which will provide access to the main zone. SMDC and partners Mahogany Minerals (VSE) with 19%, Golden Rule Resources (VSE), 30%, and Shore Gold Fund (15%), are especially excited by the properties potential for high grade tonnage. Drilling has outlined a geological reserve of 175,000 tons grading 0.72 oz gold per ton. Garrison Twp.

There are a number of reasons why the Jonpol Explorations (TSE), T & H Resources (TSE) joint venture at Garrison Twp., has been one of the most talked about exploration plays in the Harker Holloway, Ont., gold camp. Not least of those is the fact that the partners have already outlined 1.3 million tons of grade 0.231 oz gold per ton with a true width of 11.9 ft. If Lac Minerals (TSE) decides to exercise its option to earn a 50% interest, Lac’s Macassa mill could be utilized to mill material from the property. Golden Bear

A project of Chevron Minerals and North American Metals (VSE), the Golden Bear has reserves of 1.8 million tons grading 0.32 oz gold per ton. Homestake Mines now controls North American. Chevron, the project operator, is said to be interested in selling its position, located in an isolated area of northwestern British Columbia. Capital cost estimates of $36 million (including $10 million for road access) seems a bit lean. Ground conditions are very poor, suggesting above average dilution. Also, ore is quite refractory and requires expensive autoclaving. Magino

Preliminary drilling results suggest that McNellen Resources’ (VSE) Magino project near Wawa, Ont., could extend to a depth of 5,000 ft. But questions linger about the continuity of the ore at depth and the metallurgy. Echo Bay Mines (TSE) has surfaced as a major shareholder in McNellen, lending some credence to the bright future espoused by some analysts. Musslewhite

Hosting the largest gold inventory in the Pickle Lake-Opapimiskan camp in northwestern Ontario, the Musslewhite deposits could be in production by the early 1990s. Total reserves stand at six million tons grading 0.203 oz gold per ton. Underground exploration and a feasibility study on the East Bay zone, which hosts most of the reserves, could be completed by the end of 1989. Partners include Placer Dome Inc. (TSE), Corona Corp. (TSE), Esso Minerals and Inco Gold. Premier Gold

A project involving Westmin Resources (TSE), Pioneer Metals (TSE) and Canacord Resources (TSE) located north of Stewart, B.C. Attractive project technically with open pit mineable reserves at Silbak Premier of 5.9 million tonnes averaging 0.063 gold and 2.3 oz silver per ton. Big Missouri, the adjacent property which is part of the project, offers reserves of 1.6 million tonnes grading 0.11 oz gold and 0.86 oz silver. Combined reserves represent a 10.5 year mine life. Further potential in old underground workings. Pioneer Metals participation could be affected by problems at its Puffy Lake project. Also, Canacord has a cash call of over $6 million which could be tough to raise under current market conditions. Could be some additional consolidation of property interests here. Skukum Creek

Omni Resources (VSE) and Skukum Gold (VSE) are partners on this project 40 miles south of Whitehorse, Yukon. Drill proven reserves stand at 821,000 tons averaging 0.23 oz gold and 8.9 oz silver per ton. Planning to begin production using Venus mill 65 road miles from mine site. Thus, they can avoid permitting for mine tailings etc. Total Energold mill at nearby Erickson/AGIP property could become available if new reserves aren’t found there. Omni is in an excellent position to negotiate purchase or custom milling arrangement with Total Energold at later date. The property is fairly low grade by Yukon standards. Although arsenopyrite exists in orebody, company says it won’t cause any problems. Good chance of success but is sensitive to the price of gold because of grade, potential dilution, an d possibly lower than anticipated recoveries. SNIP

Located in Iskut River area north of Stewart, B.C., this project should sustain minimum production rate of 300 tons per day for joint venture partners Cominco (TSE) and Delaware Resources (VSE). However, a higher rate desired by Delaware could lead to excessive dilution and production problems as demonstrated by experience elsewhere in the industry. Reserves are 1.2 million tons of 0.7 oz gold with additional potential. High grade zones should ensure rapid payback of capital. The project is more accessible than most in northwestern British Columbia. Clean ore metallurgically. Refined product will be produced on property so no concentrate shipments will be made. Cominco provides seasoned mine developers, particularly in northern regions. Tundra

Described as Hemlo-like in size, the Tundra deposit hosts potential reserves of some 32 million tons grading 0.20 oz gold per ton. The deposit is located 130 miles northeast of Yellowknife, N.W.T., where the absence of year round roads and a harsh climate represent formidable obstacles to partners Noranda Inc. (TSE) and Getty Resources (TSE). Despite its impressive size, the Tundra deposit requires more work to confirm its continuity and grade. Over 17 separate mineralized zones have been identified. Most of the Tundra gold is associated with arsenopyrite, a refractory mineral, which could pose environmental and metallurgical problems. A $35-million dollar underground exploration program, currently under way, is expected to confirm the continuity and grade of the deposit and provide bulk samples for metallurgical testing. Willa

This Northair Mines (TSE) project has reserves of 606,000 tons grading 0.22 oz gold and 0.28 oz silver per ton and 1.1% copper. Mineable reserves are still being calculated but are fairly low grade. Gold values are erratic. Will probably require selective mining to optimize grade. There is good exploration potential, however, which could enhance reserves and allow development of multiple stoping areas. Could be a 200-ton-per-day operation. Northair has its old Brandywine mill on the property which will be used at production. Cominco Engineering working on mine plan for operation.