Gold exploration in Wawa steady, but less intense.

• Author: Bickford, Paul
• Position: Wawa, Ontario - Gold Mining Report

Gold exploration in Wawa steady, but less intense

Mining and exploration continue in the Wawa district, but at a less intense rate.

Ed Frey, staff geologist in the Wawa district resident geologist's office of the Ministry of Northern Development and Mines, noted that the number of projects last year remained about the same as 1988.

However, he said that many of the projects were more modest in scope, with less spending and hiring.

"The intensity of activity is somewhat reduced," he explained.

Frey said companies attribute that to the cancellation by the federal government of the flow-through shares incentive program.

However, about 10 local propectors have received grants under the new Ontario Prospectors Assistance Program.

Despite that, Frey isn't predicting a great year. "As measured by the last few years, it will be slightly below average."

To assist development, the provincial government is also building a road to the Goudreau area mines by way of Highway 519 from Dubreuilville. Completion is expected by this fall.

Over the past year exploration and mine development activity focused primarily on the Mishibishu Lake, Goudreau and Michipicoten mining camps.

An increase in the number of active projects was also noted in the Kabinikagami Lake-Dayohessarah Lake area. As well, there was a significant increase in claim-staking activity immediately north of White River.

MUSCOCHO EXPLORATIONS

In the Goudreau area, the Magino Mine is jointly owned by Muscocho Explorations Limited (50 per cent) and McNellen Resources Inc. (50 per cent).

Estimated ore reserves stand at 1.6 million tons with an average head grade of .16 ounces of gold per ton.

Last year 23,139 ounces of gold were produced from 140,000 tons, at a grade of .172 ounces per ton.

The mine and mill, which are located 60 miles north of Wawa, have 132 employees and went into commercial production in 1988.

The current reserve base should be good for 10 years, said Steve Brunelle, vice-president for corporate affairs with Muscocho Explorations Ltd. in Toronto.

However, the future of the company's Magnacon Mine in the Mishibishu Lake area is not certain.

The mine is not in commercial production, noted Brunelle.

However, the mine produced 14,865 ounces of gold from 102,000 tons of ore from June to December of last year for a grade of .171 ounces of gold per ton.

Brunelle said the mill has caused a lot of problems.

Currently, it has a 90-per-cent recovery rate (compared to 96 per cent for...