Exploration activity alive and well in Timmins: downturn doesn't deter 100+ juniors from local activity.

• Author: Stewart, Nick
• Position: TIMMINS

The global economic downturn may be slowing exploration activity around the world, but don't tell that to the more than 100 companies actively exploring for precious and base metals throughout the Timmins region.

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"Things are actually doing quite well, in general," says Brian Atkinson, regional resident geologist for the Timmins region with the Ontario Geological Survey.

"Base metals are down, but gold is up, so that's keeping lots of investment and lots of activity going on in the area. The fact that it's becoming easier to raise money for gold projects than base metals is obviously contributing as well."

Detour Gold (TSE: DGC) has drilled 32,682 metres of a 50,000 metre drill program in the Detour Lake area, 180 kilometres northeast of Timmins.

The company is pursuing a pre-feasibility study, which is expected to be completed this fall. It will incorporate results announced in early June, including 17.6-grams per tonne (g/t) gold over 28 metres and 3.5 g/t over 36 metres.

So far, the project has a measured and indicated resource of 10.8-million ounces and an inferred resource of 2.4 million ounces. The feasibility study is projected for the first quarter of 2010.

While the McFauld's Lake area further to the northwest continues to fire the imagination of many juniors, Atkinson says the elevated costs of working in that camp is causing firms operating there to plant another foot in the Timmins camp.

Drilling in McFauld's can cost $350-per metre, whereas costs drop to $100 in the Timmins area, largely due to widespread vehicle accessibility.

Melkior Resources (TSX-V: MKR) is one such company with a presence in both locations, with its Carscallen Gold Property just five kilometres west of Lake Shore Gold Corp.'s (TSE: LSG) Holmer Mine.

Near-surface gold-bearing structures have been traced for nearly a kilometre on the property, and they remain open to depth and at length. Drill results returned in April from its 2008 2,846-metre drill program included one hole which assayed at 55.2 g/t over a metre.

Melkior is just one junior following the footsteps of Lake Shore Gold's success story, which soundly refuted the old local geologist's adage that "There's no gold west of the Mattagami River."

Lake Shore's discoveries have helped spark strong activity in the surrounding area, much of which had gone unexplored.

West Timmins Mining (TSE: WTM) is another such company, with land holdings west of Timmins spanning 114 square...