SMDI #

1264

Historical Showing Names

Nicholson Mine [Nicholson Zones 1 to 6]

Project Name

UTM Northing (NAD83 Z13)

6596397.0800

TRM (Township-Range-Meridian)

120-15-3

Associated Commodities

Cobalt, Copper, Gold, Lead, Nickel, Selenium, Silver, Vanadium, Zinc

Status

Deposit: Post-Production

Geological Domain

Beaverlodge

Host Minerals

Exploration History

7/27/1989 The Nicholson Property, originally consisting of FLO, JIM, IVEY, DOROTHY, PETER, MARGARET, APEX, and STORM claims, is on the north shore of Lake Athabasca approx. 10 miles (16.1 km) southeast of Uranium City and east of the town of Goldfields. The property is said to have been first staked for iron in 1920 and in 1929 restaked, and explored in 1930 for its base metal potential. In 1935 it was prospected for its gold possibilities and the zone, now known as the Nicholson Bay No.4 Zone was explored by two adits with a total of 350 feet (106.7 m) of underground workings. In the course of this work uranium stain and pitchblende were discovered, marking the first uranium discovery in the Beaverlodge area. Shortly afterward the work was suspended and the property lay dormant until 1949. In 1949, prospecting, trenching, and 15 drill holes were completed to re-assess the economic potential of the pitchblende in Zone 4. Prospecting and follow-up diamond drilling (26 holes) were carried out on the other zones at the same time. A shaft, with lateral development on the 100 and 200 foot levels, was sunk to 232 ft (70.7 m) on Zone 4. A shaft (135 ft or 41.1 m) and 562 feet of lateral development on the 100 foot level was completed on Zone 2 and a 60' deep prospect shaft was completed on the Zone 1 extension. Results were not encouraging and subsequent work was carried out on Zone 4. To the end of 1950, further lateral work was completed on Zone 4 on the first (1,530 ft) and second levels (1,340 ft). In 1951, the shaft was deepened to 325 feet (99.1 m) and some lateral development work was done on the third level. When this work did not find the downward extension of the ore zone, all development work was stopped. The same year Nicholson Mines was reorganized and named Consolidated Nicholson Mines Ltd. In 1954, Consolidated Nicholson Mines Ltd. contracted the sale of its ore to the Eldorado Mining and Refinement Ltd. mill. Work resumed in 1955 and stoping was carried out on the first and second levels of the No. 4 shaft. In 1955, 1,114' of diamond drilling was completed on Zone 1. The results were not encouraging. In 1956, the contract with the Eldorado mill expired. Eldorado's offer to buy 2,000 tons of ore at a price 1/3 less than the contract price was rejected. Mining operations ceased, the mine was closed and, the mine plant was sold. Between 1955 and the middle of 1956, ore was shipped to the Eldorado mill for custom processing. Between 1958 and 1959, KLK Mining Company highgraded the deposit above the lower adit level. The property was then allowed to lapse. In 1965, J. McDonald staked the property as the MC claims nos. 1 to 6. In 1967, Enex Mines Ltd. took over a working option on the claims and completed geological and scintillometer surveys in the early part of 1969. They had exclusive exploration rights until 1973. In the latter part of 1973, Enex Mines completed soil-gas sampling and a bog sample survey on MC claims 3 and 4. In 1970, Consolidated Nicholson Mines Ltd. completed work on that portion of the Nicholson Bay property covered by ML 4760 to ML 4762. This is known as developed area No. 1. The work consisted of clearing, mapping, sampling and radiometric surveys over Zone 1, Zone 1 extension and Zone 6. In 1975, the MC claims were converted to ML 5131 with J McDonald still holding the lease title. In 1975, Enex Resources again optioned the property. Enex completed 8 drill holes (2,025 feet) to test Zone 4, the main vein, the east contact between iron-rich quartzite and dolomitic quartzite and areas of anomalous bog samples. No mineralization was encountered during the drilling. Auric Resources (formerly Consolidated Nicholson Mines) scheduled exploration on the Nicholson Bay property in May, 1977. The exploration, which will include EM and magnetic surveys, a follow-up radon detection survey and possible diamond drilling is targeted to look for uranium deposits along a 2,000 foot (609.6 m) long overburden covered fault that extends through zones 1 and 2. The program will also search for extensions to Zone 2. Between 1987 and 1988, a Eldor Resources (60%) - Mary Ellen Resources (40%) took control of CBS 8204 and NIC claims 1 to 5 (these dispositions covered the minesite). The property was geologically mapped and sampled and 9 drill holes were completed (AF 74N08-0139). Drill results are given above. Between 1987 and 1988, Chancellor Energy Resources Ltd (50%) and SMDC (50%), under an option from Mary Ellen Resources, completed 26 drill holes (MC87-1 to -9, MC88-10 to -26), radiometrically logged the "Red Zone" (a series of hematized carbonatized calc-silicate diopside rocks), trenched and sampled the 1, 2, and 6 zones, and completed a ground magnetic survey over the 2 Zone (AF 74N08-0049). In 1997, Greater Lenora Resources flew an airborne EM, magnetic, and spectrometer survey over the deposit (AF 74N-0007).

Reserves and/or Resources

1950-01-01 Zone 4: Consol. first level: a 245' long by 3.8' wide ore shoot that grades 0.38% U3O8 and 0.23 oz/ton Au. Second level: a 90' long by 6.0' wide ore shoot that grades 0.4% U3O8. Summary: Zone 4- Second level: Historic reserve (unspecified) - Uranium @ 0.4 % Zone 4- First level: Historic reserve (unspecified) - Uranium @ 0.23 oz/ton - Uranium @ 0.38 %