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Flag conducting only gold exploration in Sudbury.

Flag conducting only gold exploration in Sudbury

Although the Sudbury mining district is not known for gold exploration and production, what little activity there is will decrease even further this year.

With only one exploration site, one milling operation and no producing mines, resident geologist Wilf Meyer said the current level of gold activity is at its lowest in at least three years.

He said the downward spiral in gold exploration in the area and in most others can be attributed to the lack of flow-through share funding and to lower gold prices.

"The greatest amount of activity occurred when flow-through was at its peak during 1987 and 1988," explained Meyer.

Meyer said programs such as the Ontario Prospectors Assistance Program (OPAP) have had little effect on gold exploration activity in the district. "We haven't yet seen the full impact of the program."

Although he hadn't seen all the work permit applications for 1990, the outlook for the remainder of 1990 shows a continuation of the downturn. Meyer explained that the current work permit system is a slow process, making it difficult to come up with an accurate projection.

Flag Resources (1985) Ltd. of Calgary, had drilled three holes on the east side of Lake Wahnapitei in Rathbun Township. The holes had a combined length of 485 metres.

The drilling did not intersect anything of economic significance.

Last fall Flag Resources moved drilling equipment onto some 70 claims in MacKelcan Township, located north of Lake Wanapitei.

By December the company had drilled five holes at the Jess Lake property, with a combined length of 3,615 feet.

According to the resident geologist's report, the drilling intersected 0.43 ounces of gold per ton over 49 feet at a depth of between 715 and 764 feet.

The claims that were diamond drilled had been optioned to Helca Mining Co. of Canada Ltd. but returned just prior to drilling.

Meanwhile, Orofino Resources Limited is continuing to mill stockpiled ore at the Scadding Mine in Scadding Township, located approximately 20 miles northeast of Sudbury.

The stockpiled ore was obtained from the "intermediate zone" in 1988 and originally consisted of about 120,000 tons at 0.22 ounces of gold per ton.

Utilizing a refurbished 200-ton-per-day mill, Scadding reserves are estimated at 120,000 tons.

Hauling the ore from a ramped underground exploration site on the property, milling operations are expected to last at least to the end of the year.

Concentrate is trucked to the Horne smelter in Noranda, Que.

Production in 1989 was about 5,000 ounces of gold.
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Title Annotation:Gold Mining Report; Flag Resources Ltd.; Sudbury, Ontario
Author:McDougall, Douglas
Publication:Northern Ontario Business
Date:Jul 1, 1990
Previous Article:Investors seeking more 'stable' ground.
Next Article:Exploration by junior firms reduced despite interest generated by mapping.

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