The Deer Cove Trend covers an area of approximately 2.5 km2 and encompasses the northern tip of the Point Rousse Project area. The Deer Cove Thrust defines its southern boundary (Figure DC1). In 1984, this area was targeted by Noranda Exploration and by 1986 the company had identified a suite of 16 showings and prospects, including the Deer Cove Main Zone, a small vein style prospect. The Deer Cove Main Zone may have potential as a source of high-grade incremental feed for the Pine Cove mill. Likewise, the Deer Cove Trend has significant potential for additional discoveries.
Deer Cove Main Zone
The Deer Cove Main Zone was discovered in June of 1986. Noranda, under an option and joint venture agreement with Galveston Resources Ltd., carried out prospecting, geological mapping, geochemical and geophysical surveys, trenching, construction of a 7.2 km access road and 507 m of underground exploration. Noranda also drilled 119 holes totaling 11,963.75 m along the Main Zone. No further work was completed and the Deer Cove Property reverted to Crown Land on November 11, 1998.
South Coast Ventures Inc. staked the Deer Cove area in 2001. Historic data, including diamond drilling and underground data, was digitized, and in 2010 an infill drill program (14 holes totaling 420.8 m) was completed. P&E Mining Consultants (“P&E”) completed a mining and economic analysis of the Deer Cove Project. P&E reported that the portion of the Deer Cove Main Zone, lying 45 m and above sea level, contained a non-NI 43-101-compliant estimated resource of 12,900 tonnes grading 10.45 g/t Au at a cutoff grade of 6.0 g/t (Anaconda has not verified the accuracy of this estimate). However, no further work was undertaken and the Deer Cove block was acquired by 1512513 Alberta Ltd (“Alberta”).
The Deer Cove Main Zone gold is hosted by discontinuous lenses of brecciated quartz developed within an approximately north-south striking, 45-55 west-dipping structure. The breccia lenses average less than 1 m in width but locally may reach up to 3 m. The zone has been traced by trenching and diamond drilling over a 500 m strike length, but is still open along strike to the north and down-dip.
Gold occurs both as: 1) free gold within the quartz veins and the altered wallrock (Plate DC1), and 2) disseminated mainly within pyrite. Noranda reported that the best grades were from the most deformed sections of the zone, closest to the sole thrust where the zone abuts a jasper-rich volcaniclastic unit. This southernmost 32 m of the zone contained abundant visible gold and averaged 14.25 g/t Au over a width of 2.9 m.
Based on the historical results and the potential of the trend, Anaconda has conducted several stages of exploration along this trend outside of the Deer Cove Main Zone. In 2013, Anaconda flew an airborne geophysical program consisting of magnetic and electromagnetic surveys and combined them with a similar but separate survey previously carried out by Alberta. Alberta completed a helicopter-borne tri-axial magnetic gradiometer survey in late 2012 over the Deer Cove area. The area was flown in two overlapping directions; north–south and east-west on 100 m spaced lines for a total of 386 line km. The 2013 survey clearly defines the thrust fault and the juxtaposition of mafic volcanic rocks with the highly magnetic ultramafic rocks; the key structural feature considered prospective in this trend. Anaconda has also begun to follow up on historical showings and veins as described in earlier compilations by verifying their locations, analyzing samples and mapping their distribution.
In 2014, Anaconda carried out a reconnaissance prospecting program targeting alteration zones previously identified by Noranda in the late in 1980s. A total of 128 samples were collected and analyzed at Eastern Analytical Labs in Springdale, NL. A sample, collected from a small quartz vein to the south of Deer Cove Pond, returned a significant gold value of 2.18 g/t Au.
In summer 2014, Anaconda completed an infill diamond-drill program comprising 17 holes totaling 2,100.72 m at the Deer Cove Main Zone. The best results were intersected by drill holes DC-14-138 and DC-14-145 which returned values of 15.52 g/t Au over 2.5 m and 1.74 g/t Au over 14 m, respectively.