SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
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OCTOBER 2005 • No 63 <strong>SEG</strong> NEWSLETTER 41<br />
south <strong>of</strong> Thompson. A recent study concluded<br />
Minago contains a measured<br />
and indicated resource <strong>of</strong> 29.84 Mt<br />
grading 0.64% Ni. Winter drilling on<br />
the Main zone at Minago intersected a<br />
2<strong>45</strong>.9-m interval grading 0.68% Ni.<br />
In the Flin Flon-Snow Lake area,<br />
Hudbay Minerals (formerly OntZinc<br />
Corporation) acquired Hudson Bay<br />
Mining and Smelting from Anglo<br />
American in late 2004. In February,<br />
Hudbay announced that it would spend<br />
$10M on exploration over 12 months<br />
on their large Manitoba- and<br />
Saskatchewan-based property portfolio.<br />
Mustang Minerals acquired 100%<br />
interest in the Mayville property in the<br />
Bird River Belt in southeastern<br />
Manitoba. Drilling commenced in June<br />
to test conductors associated with the<br />
12-km-long layered, mafic-ultramafic<br />
Mayville intrusion. By early August, 16<br />
holes had been completed on the M2<br />
zone, all intersecting wide intervals<br />
(minimum 20 m true thickness) <strong>of</strong> sulfide<br />
mineralization containing lowgrade<br />
nickel-copper-PGE values. The M2<br />
zone conductor has 1.2 km <strong>of</strong> untested<br />
strike length remaining, and other geophysical<br />
targets remain to be tested.<br />
Mustang Minerals also owns 100%<br />
interest in the Maskwa nickel deposit<br />
30 km south <strong>of</strong> the Mayville property.<br />
An NI 43-101 compliant resource calculation<br />
completed in February estimates<br />
Maskwa contains an indicated open pit<br />
and underground resource <strong>of</strong> 6.0 Mt,<br />
grading 0.74% Ni and 0.15% Cu.<br />
Drilling conducted in the spring was<br />
successful in extending the Maskwa<br />
deposit to the east.<br />
Bema Gold and Wolfden Resources<br />
conducted another round <strong>of</strong> winter<br />
drilling at their Monument Bay property<br />
in northeast Manitoba. Drilling at<br />
the Twin Lakes and Seeber River zones<br />
intersected high-grade values, including<br />
4.8 m grading 31.71 g/t Au and 3.28 m<br />
grading 41.95 g/t Au. Inferred resources<br />
at Monument (2004) are 1.07 Mt, grading<br />
15.36 g/t Au, using an 8 g/t cut<strong>of</strong>f.<br />
In southeastern Manitoba, San Gold<br />
Resources and Gold City Industries<br />
amalgamated to form San Gold<br />
Corporation. San Gold owns the Bissett<br />
gold mine which consists <strong>of</strong> an 1,100tpd<br />
mill and mine with proven and<br />
probable reserves <strong>of</strong> 818,000 t, grading<br />
9.2 g/t Au. San Gold anticipates having<br />
the Bissett mine back into production<br />
by the fourth quarter <strong>of</strong> 2005. The company<br />
also has 3 other near-surface gold<br />
deposits located in close proximity to<br />
the Bissett operation in various stages <strong>of</strong><br />
exploration or development.<br />
NUNAVUT<br />
Exploration activities continued at a<br />
high level across Nunavut, focused on<br />
gold, diamonds and base metals with or<br />
without PGMs.<br />
Nunavut’s last mining operation,<br />
Goldcorp’s (and formerly Echo Bay’s)<br />
Lupin mine ceased operations, joining<br />
Nanasivik and Polaris as operations in<br />
reclamation.<br />
The largest exploration program in<br />
the Territory continues to be Miramar<br />
Mining’s Hope Bay project, which is<br />
nearing completion <strong>of</strong> a 30,000+ m drill<br />
program focused on advancing portions<br />
<strong>of</strong> the three main deposits to feasibility<br />
status. Miramar reported some outstanding<br />
results from the Madrid<br />
deposit, including 66.5 m grading 11.5<br />
g/t Au in the Naartok zone. On the permitting<br />
front, Miramar continues to<br />
work its way through getting a second<br />
NIRB approval for its Doris North<br />
deposit.<br />
In January, Miramar completed the<br />
sale <strong>of</strong> its option to earn 60% from<br />
Kinross on the Back River project to<br />
Dundee Precious Metals. Dundee is<br />
undertaking a $9M, 18,000-m drilling<br />
program to further define the George<br />
Lake and Goose Lake deposits.<br />
At Meadowbank, Cumberland completed<br />
a feasibility study in February<br />
2005 that confirmed potential for a<br />
large open pit operation at a capital<br />
cost <strong>of</strong> $300M and cash costs <strong>of</strong> US$224<br />
per oz Au. It is now in the midst <strong>of</strong> the<br />
NIRB permitting process. Cumberland is<br />
also undertaking a $3.5M exploration<br />
program at Meadowbank to increase<br />
resources and reserves. Cumberland<br />
also has a 22% carried interest in the<br />
Meliadine West project with Comaplex<br />
Minerals, where a 15,000-m drilling<br />
program is underway to expand the<br />
West Tiriganiaq deposit. Results so far<br />
include up to 13.7 g/t Au over 6.4m.<br />
Gold Fields converted its 55% interest<br />
in the Committee Bay project into<br />
shares <strong>of</strong> Committee Bay Resources,<br />
but granted Gold Fields a one time back<br />
in right to forgo the equity and retain<br />
its 55% interest. In the Committee Bay<br />
belt in eastern Nunavut, drilling<br />
focused on the Three Bluffs area, with<br />
results that included 46 g/t Au over 3.7<br />
m and 13g/t Au over 2.2 m, as part <strong>of</strong> a<br />
$8M program planned for 2005.<br />
Wolfden was active at its High<br />
Lake polymetallic deposit, where it<br />
intersected three new zones <strong>of</strong> massive<br />
sulfides, including the Sand zone 12 km<br />
north <strong>of</strong> High Lake, where the first drill<br />
hole on a UTEM target intersected 2.7%<br />
Cu over 21 m.<br />
Sabina Resources announced a significant<br />
resource increase at the now<br />
100% owned (subject to a back in right<br />
by Teck Cominco) Hackett River massive<br />
sulfide deposit, reporting over 50<br />
Mt polymetallic mineralization dominated<br />
by zinc and silver values. Sabina<br />
is undertaking a resource expansion<br />
program and has reported intercepts <strong>of</strong><br />
up to 10% Zn and 230 g/t Ag over 23<br />
m.<br />
Diamond exploration continues to be<br />
active in a number <strong>of</strong> areas. Tahera’s<br />
Jericho diamond project received its<br />
permits in early 2005 and mobilized<br />
approximately 550 truckloads <strong>of</strong> equipment,<br />
materials, and supplies to the<br />
Jericho site. Construction is reported to<br />
be well underway for a targeted completion<br />
at year end; this will be Nunavut’s<br />
first diamond mine.<br />
In the Churchill area, partners<br />
Stornoway, Shear Minerals and BHP<br />
Billiton reported their first macrodiamond<br />
from the property, one <strong>of</strong> 11 kimberlites<br />
discovered in 2005, including<br />
one in outcrop. On Wales Island, partners<br />
Stornoway, Strongbow and BHP<br />
intersected kimberlite on their first hole.<br />
In the Melville Peninsula,<br />
Stornoway, BHP Billiton, and Hunter<br />
Exploration resumed exploration on<br />
the Aviat project, where 6 diamondiferous<br />
kimberlites have been discovered,<br />
including AV-1, which returned a grade<br />
<strong>of</strong> 0.8 carats per tonne.<br />
In the Slave province, Ashton and its<br />
partners are undertaking a summer<br />
drilling program at Kikerk Lake in the<br />
Coronation Gulf area.<br />
WESTERN<br />
UNITED STATES<br />
Regional Correspondent:<br />
Roger C. Steininger (<strong>SEG</strong> 1978)<br />
Consulting Geologist, 3401 San Mateo Ave.<br />
Reno, NV 89509<br />
Tel: 775-323-7775<br />
Fax 775-323-1134<br />
E-mail: audoctor@aol.com<br />
ARIZONA<br />
Augusta Resource Corp. acquired the<br />
copper resources in the Rosemont district<br />
(Pima County),<br />
to page<br />
consisting <strong>of</strong> the<br />
42 ...<br />
EXPLORATION REVIEWS