Exploration by major mining firms continues in Kirkland Lake.

Exploration by major mining firms continues in Kirkland Lake 

There has been a decline in mineral exploration activity in the Kirkland Lake mining district.

Resident geologist Gerhard Meyer lays the blame squarely on the cancellation of the federal government's flow-through share program.

"The junior companies cannot raise money to do their exploration," Meyer said.

However, he said that larger companies, such as Noranda, still have enough cash of their own to conduct exploration.

Meyer said it is hard to know how many jobs have been lost because of the slowdown, but he guessed, "It must be hundreds."

There is also a snowball effect throughout the whole economy, he added.

However, Meyer said that only a major event such as the closure of the Adams Mine makes the news headlines.

The Dofasco-owned iron ore mine closed last March, resulting in the loss of more than 360 jobs.

An agreement in principle has been reached with Metro Toronto to turn the Adams' pits into a disposal site for a 1.5 tons per year of Toronto's garbage.

Despite the general downturn in exploration and mining, the search for new mineral deposits still remains important to the Kirkland Lake economy.

The following are some of the highlights of mining activity in the district.

NORANDA/FREEWEST

Extensive drilling has been underway for a year at the Harker-Holloway gold property about a mile north of the Holt-McDermott Mine in the Matheson area.

The work, involving several drilling rigs, is a joint venture between Noranda Minerals Inc. and Freewest Resources.

"It looks like it's definitely a mine," said Lance Tigret, vice-president of finance with Noranda Minerals in Toronto.

So far, about two million metric tons of ore have been identified, with an average grading of about .25 ounces of gold per ton.

Tigret said drilling will continue over the winter until the ore body, which is still open to the east, is defined.

He expects that a decision on whether or not to sink a shaft for production will be made sometime in 1991.

AMERICAN BARRICK

American Barrick Resources has identified a new ore zone on the Mattawasaga property at its Holt-McDermott Mine

The new zone extends over 1,150 feet and from depths of 1,150 feet to 1,500 feet below surface, with intersections of between 45- to 80-foot widths. It includes an 85-foot intersection averaging .23 ounces of gold per ton.

The discovery is open along strike and at depth, and dips at approximately 70 degrees to the south.

Last year the Holt-McDermott Mine produced about 70,000 ounces of gold. It opened in 1988.

GREATER LENORA

The American Barrick identification of the new ore zone is close to the northwest corner boundary of the joint venture property held by Greater Lenora Resources Corp. and Inco Gold.

Barrick has advised Lenora that it is drifting over to the new discovery on the 250-metre level and it expects to have more information in the early part of this year.

"The recent gold discoveries at depth by Barrick and Noranda/Freewest Resources is indicative of the great potential of the Harker-Holloway area," stated R.J. Kasner, president of Greater Lenora, in an October media release. "Lenora is one of the largest land holders in the area and considers its strategically located land holdings to be assets for the future growth of the company."

In 1985 Lenora and Inco drilled two holes to test the down dip extension of the Mattawasaga Zone near the northwest corner of the joint-venture property. The zone entered Lenora/Inco ground at 1,500 feet below surface.

The holes indicated a wide anomalous alteration zone grading .027 ounces of

gold per ton over 318.5 feet, including .124 ounces of gold per ton over 23.5 feet and .254 ounces of gold per ton over 4.8 feet.

Lenora/Inco controls more than 14,500 feet of strike length covering the down dip extension of the Mattawasaga Zone. One hole drilled in 1985, 6,900 feet west of the present discovery, intersected the zone at approximately 2,900 feet below surface and returned .509 ounces of gold per ton over 5.8 feet and .257 ounce of gold per ton over 10.5 feet within a much broader mineralized gold zone. These holes at depth indicate that the Mattawasaga Zone is gold rich and could possibly host other gold ore bodies along its strike length.

Lenora owns other groups of claims in the area and has a two-per-cent net smelter return on a group of properties previously sold to Barrick. The return activates after one million tons of ore have been mined.

LAC MINERALS

Macassa Mine had an excellent year in 1990, said Gerry Gauthier, senior vice-president of operations with Lac Minerals Ltd.

Gauthier noted that there was a record production of about 100,000 ounces of gold, compared to just more than 82,000 in 1989.

He explained that the number three shaft, constructed in 1986, was the main reason that production has been almost doubled in four years.

The shaft created access to new reserves, allowed for more exploration and reduced operating costs, he said. "It just opens up the floodgates."

The ore has a grade of a little more than .5 ounces of gold per ton.

Gauthier recalled that in the 58 years of Macassa's operation there was often no more than a year of reserves on hand.

"Now we're probably in the best shape we've ever been," he said, noting that there is close to 10 years of reserves.

The mine employs about 330 people.

Lac has also operated the Lakeshore tailings project in Kirkland Lake since 1988. Gauthier said the project is currently going very well.

The project has a recovery rate of 60 to 70 per cent, he noted, "which is excellent for a tailings project."

The tailings from the old Lakeshore Mine have a head grade of .08 ounces of gold per ton.

Gauthier said the tailings project has 10 to 15 years of reserves.

QUEENSTON

Lac has also been drifting from the Macassa property into the adjoining Queenston Mining property.

"That is pure exploration," said Gauthier. "We haven't been successful to date, but you never know."

With the drifting and an underground drilling program, Lac earns an interest in the Queenston property.

Queenston is drawing a royalty from Macassa.

DEAK RESOURCES

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Deak Resources Corp. and its 63-per-cent-owned GSR Acquisition Corporation bought the Kerr Mine and mill in Virginiatown in 1989 from the bankrupt Golden Shield Resources.

In May the mill went back into operation with feed from the mine. It also does custom milling for mines in northeastern Ontario and northwestern Quebec.

In late November the mill processed a record 1,450 tons of ore per day.

H.D. Hume, a director of Deak Resources in Toronto, said it is hoped production will increase to 2,000 tons per day as early as this month.

Kerr Mine has an undiluted grade of .13 ounces of gold per ton, from which a little more than .1 ounces of gold per ton is recovered.

The operation employs about 175 people.

There are about 2.5 million tons in reserves with an undiluted .132 ounces of gold per ton, at least several years on supply.

Deak has also purchased Silverside Resources Ltd.'s 87.5-per-cent interest in 106 claims in Garrison and Thackeray townships for $705,000.

The remaining 12.5-per-cent interest in held by Lac Minerals and Perrex Resources Inc.

The property will supply feed for the Kerr Mine.

The property, about 50 miles north of Virginiatown, has a mineral inventory of approximately 452,000 tons with an average grade of .145 ounces of gold per ton. Almost 10 per cent of the material, with a grade of .175 ounces, is available in a shallow, open-pit mine.

ARMISTICE 

Armistice Resources has been exploring a property on the western edge of the Kerr property.

Armistice also has a deal with Deak, by which the latter can earn a half interest in Armistice's 75 per cent stake in the project. The remaining 25 per cent is owned by two other juniors.

Hume said both companies are trying to raise money for exploration and he does not expect anything to happen until later this month.

The exploration programs have been outlined and costed, and he is confident they will go ahead.

Armistice will undertake bulk sampling from the old Armistice Mine shaft to see if the Kerr ore body down-faulted onto the Armistice property.

Meanwhile, Deak is planning to rehabilitate a drift at the 3,850-foot level of Kerr Mine and extend it into Armistice property to conduct drilling.

"We're seeking a possible extension of the Kerr-Addison mineralization," Hume said, adding that the extension looks promising. "There's a strong possibility with continuing work we'll find significant widths and grades of gold."

NORTHFIELD

Deak is also involved with Northfield Minerals in the former Cheminis Mine and the Barber-Larder property.

"We're in a joint venture with a view to bringing Cheminis into production relatively quickly," Hume said, adding that the target date is early this year.

Cheminis ore would be transported to the Kerr mill.

Hume said there are defined reserves on the property. "We do believe it is viable."

Rockford Minerals, an affiliate of Northfield, has smaller interests in the properties.

PHOTO : The number three shaft at Lac Minerals' Macassa Mine, seen here, is the main reason why production at the mine has almost doubled in four years.