Gold Rush Renaissance in North West Ontario

By Dave Brown – Exclusive to Gold Investing News

Gold was first discovered in the Kenora district in the 1890’s with a number of deposits combining to produce approximately 250,000 ounces of gold, prior to the cessation of all operations before the Second World War. Subsequently, there has been limited gold production from the district; however, a number of recent discoveries have been made in the region. The Cameron Gold Deposit was discovered by prospectors working for Noranda in 1960. Two mineralized zones at surface were identified extending over a strike length of more than 300 metres. Between 1960 and 1973 these zones were tested by limited drilling, trenching, geophysical surveys and geological mapping by Noranda in two separate exploration phases and under option by Zahavy Mines.  This deposit is part of an emerging series of gold camps in the Western Wabigoon Subprovince.

Regional Activity Expansion

Ontario District Geologist, Craig Ravnaas tracks exploration work including the Southwest corner of Northern Ontario and suggested current interest in property claims shows a height of activity not seen in the broader region since the early 1980′s.   Brian Hester, a retired mining geologist who has worked in over 40 countries and maintains a strong interest in following Canadian gold projects shared his sentiments.

The Rainy River Resources Ltd. (TSXV:RR) gold discovery is one of the most intriguing mining stories of 2010, with 5 million ounces of gold, high-grade intercepts of 352.8 g/t and 701.29g/t (6.0m and 3.0m respectively), and multiple gold-bearing zones, the project has extensive development potential.  Raymond Threlkeld, Chief Executive Officer suggested that following a feasibility study to be released early next year and an aggressive drilling campaign the company may become a gold producer as part of a much larger gold camp as early as the end of 2014. Pleased with the strong drilling results already this year and the strengthening of the stock price over the last year, Mr. Threlkeld noted, “Our last resource was 5 million ounces plus and that was a year ago and since that time we have drilled almost 100,000 metres and will be adding to the resource and reporting on that in the first quarter of 2011.  It is a great amount of gold and the deposits are wide open.  We have only drilled down to 600 metres in depth and we have an ore intercept down at 1300 meters, so we expect that there is a potential double just going in depth.”   Offering some guidance on the expectations of production prospective, he suggested the company is looking towards an initial open pit mine that would be capable of 250,000 ounces per year and another underground mine that could be capable of adding another 100,000 ounces per year.  Last Tuesday, the company issued a press release on drilling progress, “These recent infill results have delivered some very high grade intersections in the ODM, 17 and 433 Zones, all at relatively shallow depths. Work has begun to prepare the updated NI 43-101 resource estimate using the latest information from the infill program and structural interpretation work completed by our consultants.”

Earlier this month, Soldi Ventures Inc. (TSXV:SOV) reported that it has expanded a property near the Cameron Lake gold deposit through an additional 50 claims increasing the scale to the east and to the west. The project includes 16,000 acres, which Soldi indicates has significant potential for both volcanogenic and structurally controlled gold mineralization, and for volcanogenic massive sulphide (VMS) base metal or polymetallic deposits.

On September 7, Bayfield Ventures Corp.(TSXV:BYV) announced that it intercepted gold at 35.93 g/t over 10.0m at its Burns Block property, just to the east of Rainy River’s discovery. A news release from the company last week reported results continue to verify that the near-surface, bulk-tonnage gold mineralization on the central to northern section of the Burns Block would be conducive to the potential extension of an open pit scenario.  Bayfield Chief Executive Officer, Jim Petit was interviewed in October on a radio program indicating his enthusiasm for the location and early drilling progress, “we are hitting these high grade shoots that run through the whole mineralized system.  They have got a series of them on the Rainy River property and we have hit one within the first 50 metres of our property and it is pretty significant.”

Gold is not the only mineral that exploration companies have actually discovered in the area, as MetalCORP (TSXV:MTC) has been developing the potential of a polymetallic resource claim with copper mineralization with the presence of significant nickel, cobalt, platinum and palladium.  In 2008, the company also recovered six diamonds in its exploration of a mafic-intrusive body called the North Rock Prospect. “It was the first confirmation that diamonds exist in this portion of Ontario,” said Mr. Ravnaas. “Hopefully it opens up everyone’s eyes that diamonds can be found anywhere in Ontario.”