MINERA~1 Record

MINERAL INVENTORY FILE NO.

0984

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PRODUCT

Gold

NTS AREA

63N02SW

REF.

AU 3

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NAME OF PROPERTY

Puffy Lake

OWNER OF OPERATOR ADDRESS

1987- Pioneer Metals Corp
1220-609 Granville St.
Vancouver, BC V7Y 1G5

OBJECT LOCATED

Decline collar

MINING DIVISION

The Pas

Latitude

55°02'05 N

Longitude

100°59'30 W

Uncertainty (m)

100

UTM Zone

14U

Easting

372300

Northing

6100100

L.S./Quarter Section

Section

Township

Range

24WPM

DESCRIPTION OF DEPOSIT

The Puffy Lake area is underlain by Amisk and Nokomis group rocks that are intruded by granite domes. Overlying these rocks, disconformably, is the Sherridon Group. Two phases of folding deform rocks in the area:
1) early high amplitude folds; for example, a narrow 50 m thick "layer" of metagreywacke occupies the core of an early isoclinal anticline; and
2) late northwest-trending cross folds, such as the fold that trends northwest from Puffy Lake (Zwanzig, 1984).

The gold mineralization occurs in a quartz vein(s) more than 1 m thick, conformable to the regional structural trend in the area, and occurring near the structural base of a fine-grained, biotite-rich gneiss and/or garnet with hornblende layers (Ostry, 1986). Mineralization consists predominantly of pyrite, pyrrhotite, and arsenopyrite with lesser amounts of galena, sphalerite, and chalcopyrite. The sulphides form zones of up to 15%, within undeformed white to smoky grey quartz veins, visible gold is present locally. Wall rocks are fine-grained, biotite-rich, quartz-feldspar schists that commonly contain up to 20% arsenopyrite.

ASSOCIATED MINERALS OR PRODUCTS OF VALUE

Silver

HISTORY OF EXPLORATION AND DEVELOPMENT

The property is located near the north shore of Puffy Lake, about 12 km southeast of Sherridon; and 62 km northeast of Flin Flon.
Hudson Bay Exploration and Development Co. Ltd. discovered the deposit in 1960, while drilling an airborne input anomaly that was located using Apex Maxim II. Granges Exploration Aktiebolag acquired the property in 1979 (Richardson and Ostry, 1996). In 1980, Maverick Mountain Resources Limited optioned the 10 BED claim block 10186 from Granges. By early 1981, Maverick had completed a 30-hole drilling program that outlined a mineralized zone containing significant tonnage of material assaying 6.86 grams/tonne (g/t) (0.20 oz/ton) Au with minor Ag values (Northern Miner; December 3, 1981). The more significant results included a value of 32.40 g/t (0.95 oz/ton) Au and 12.0 g/t (0.35 oz/ton) Ag from hole #13, and 28.83 g/t (0.84 oz/ton) Au and 5.83 g/t (0.17 oz/ton Ag in hole #12. Canadian Mines Handbook 1982-83, states estimated reserves as 428 000 t averaging 7.68 g/t (0.224 oz/ton) Au.
In or around September 1983, Granges conducted a 4-hole, $66 000 drill program, reportedly without the approval of joint venture partner Maverick Mountain.
Results were:

Hole Width
m (ft.) Assay Au g/t (oz/ton)
56 0.4 (1.3) 8.74 (0.26)
57 2.4 (8.0) 13.01 (0.38)
58 0.3 (1.0) 23.66 (0.69)
0.4 (1.3 ) 9.12 (0.27)
59 0.85 (2.8) 3.43 (0.10)

During the winter of 1984-85, a 28-hole, 1104 m drill program extended the known strike length of mineralization to 1037 m. A second zone, 275 m north of the main zone, was also discovered (Northern Miner; May 23, 1985). Drill intersections in this area included:

Width Assay
g/t (oz/ton)
1.53 m 6.86 (0.20)
2.44 m 8.22 (0.24)
1.22 m 4.80 (0.14)

Drill indicated reserves at the completion of the program stood at 726 000 t, of which 603 000 t graded 6.86 g/t (0.20 oz/ton) Au. A $2 million underground development program was carried out from June to August 1986.
In October 1986, Maverick Mountain Resources Limited and Pioneer Metals Corporation merged, under the latter's name. The new Pioneer Metals Corp. held 100% interest in the mine, subject to 20% net production interest held by Granges.
Following the completion of a feasibility study, the company put the deposit into production. The deposit was estimated to contain probable and possible reserves of 1 220 000 t averaging 7.89 g/t (0.23 oz/ton) Au, using an average mining width of 2 m, a cutoff grade of 3.4 g/t (0.1 oz/ton) and a 10% dilution factor (Pioneer Metals Corporation, News release, January 19, 1987). Diamond drilling, carried out in early 1987, increased reserves of the deposit to 2.24 million t (2.482 million tons) averaging 7.98 g/t (0.233 oz/ton) Au. Consequently, the company changed the estimated mill capacity to 908 t (1000 tons) per day, with an annual gold production of 227 kg (72 000 oz), an increase from the previous plan of 454 t (500 tons) per day, (Northern Miner, May 11, 1987).
The mine went into production on December 4, 1987 and the first bar was poured on December 15, 1987 (Northern Miner, March 7, 1988). At this time, reserves of possible and probable were 3.54 million t of 7.88 g/t Au (Northern Miner, May 25, 1988)
The mine operations were suspended in March 1989, after commercial production levels were not reached. Increasing financial difficulties and a dropping gold value contributed to the decision to close. The suspension was part of a plan to eliminate financial loss, while allowing detailed geological mapping and reassessment of mining procedures to be completed. The reassessment was halted in 1989 after drill equipment was damaged in a forest fire, the reassessment resumed, but the property was put up for sale shortly afterward.
In 1990, Pioneer declared all offers to purchase the deposit unacceptable and the property was to be inventoried until gold prices rose, or a suitable junior venture proposal was offered to the company (Canadian Mines Handbook, 1992).
A feasibility study was completed in 1993, by Kilborn Engineering Ltd., and a study of possible mining methods was completed the same year by Tonto Mining Ltd. The studies encouraged Pioneer to announce plans to reactivate the mine (Northern Miner, March 18, 1996). According to Kilborn, the proven and probable reserves were 1.3 million tonnes grading 8.57 g/t Au, and possible ore reserves of 833 700 t grading 7.15 g/t Au. Pioneer began a $6.5 million bulk sampling, underground development and surface rehabilitation program in 1996.
As of 2002, Pioneer has delayed reopening the mine, and has begun partnership discussions with possible junior venture companies.

HISTORY OF PRODUCTION

Year Au produced
kg (oz)
1987-1989 930 (30 000)

REFERENCES

Canadian Mines Handbook 1983: Canadian Mines Handbook, 1982-83, p. 150.

Canadian Mines Handbook 1992: Pioneer Metals Corporation; Canadian Mines Handbook, 1991-92, p. 316.

Manitoba Mines Branch: Corporation Files, Granges Exploration Aktiebolag.

Manitoba Mines Branch: Corporation Files, Maverick Mountain Resources Limited.

Northern Miner 1981: Northern Miner, December 3, 1981, p. 5.

Northern Miner 1985: Northern Miner, May 23, 1985.

Northern Miner 1987: Northern Miner, May 11, 1987.

Northern Miner 1988: Northern Miner, March 7, 1988.

Northern Miner 1988:Northern Miner, March 25, 1988.

Ostry, G. 1986: Mineral Investigations in the Kisseynew Gneiss Terrain; in Manitoba Energy and Mines, Minerals Division, Report of Field Activities, 1986, Report GS-20, p. 100-106.

Richardson, D.E., and Ostry, G. 1996: Gold in Manitoba; Manitoba Energy and Mines, p. 82.

Thompson Citizen 1987: From gold to ghost town and back again; Thompson Citizen, October 7, 1987.

Zwanzig, H.V. 1984: Kisseynew Project: Lobstick Narrows, Cleunion Lake, Puffy Lake, and Nokomis Lake areas; in Manitoba Energy and Mines, Mineral Resources, Report of Field Activities, p. 38-45.

MAP REFERENCES

Bailes, A.H. 1971: Map 71-1, Snow Lake-Flin Flon-Sherridon Area; 1:253 440 scale, geological map, accompanying Manitoba Mines Branch, Geological Paper 1-71.

Manitoba Mines Branch and Geological Survey of Canada 1965: Map 2555 G, Batty Lake; Manitoba Mines Branch and Geological Survey of Canada, aeromagnetic map, scale 1:63 360.

Robertson, D.S. 1953: Map 1006 A, Batty Lake; 1:63 360 scale, geological map, accompanying Geological Survey of Canada, Memoir 271.

Surveys and Mapping Branch 1984: Map 63 N/2, Batty Lake; Surveys and Mapping Branch, Ottawa, topographic map, scale 1:50 000.

URL

N/A

REMARKS

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NOTES

updated 03/03

Compiled/Revised by:

AJ; HRW; JR; JJJ

Date

05-81; 08-83, 03-84; 07-87; 08-02