MINERAL INVENTORY FILE NO.
622
______________________________________________________________________________________________________
PRODUCT
COPPER
NTS AREA
64C12NE
REF.
CU 1
______________________________________________________________________________________________________
NAME OF PROPERTY
FOX MINE
(Fox Mine No. 11)
OWNER OF OPERATOR ADDRESS
1993- Black Hawk Mining Inc.
2000 - 95 Wellington St. West
Toronto, ON M5J 2N7
http://www.bhkmining.com
OBJECT LOCATED
Map Symbol
MINING DIVISION
The Pas
Latitude
5638'0
Longitude
10138'35
Uncertainty (m)
100 m
UTM Zone
14V
Easting
337700
Northing
6279300
L.S./Quarter Section
5
Section
15
Township
88
Range
27 WPM
DESCRIPTION OF DEPOSIT
The deposit consists of a large body of massive and semi-massive sulphides in a series of Precambrian volcanic (greenstone) and interbedded sedimentary rocks, about 1.6 km (1 mi.) west of their contact with the Snake Lake gabbroic intrusive. Pyrite is the main sulphide mineral present, with smaller amounts of chalcopyrite, sphalerite and pyrrhotite. Surface diamond drilling indicated an orebody approximately 411.5 m (1350 ft) long and 18.3 m (60 ft) wide. Subsequent underground diamond drilling indicated that the orebody in the lower levels consists of two sections, with a barren zone between.
The orebody was about 33.5 m (110 ft) wide at the centre tapering toward the ends. The alteration zone that envelops the ore zone is approximately 76.2 m (250 ft) wide and 548.6+ m (1800+ ft) long with a general E-NE strike; it extends below the 869 m (2850 ft) level. This zone, which consists of quartz-muscovite gneiss, biotite-sericite gneiss and biotite-amphibolite gneiss, dips steeply, parallel to the enclosing quartz-hornblende gneiss and quartz-hornblende-biotite gneiss, part of the isoclinally folded strata, deeply dipping to the northwest and overturned to the south with the axial plane trending 075. This Wasekwan Group, with subordinate Sickle Group rocks, have been generally metamorphosed to the almandine-amphibolite facies, although some retrograde greenstone schist facies occur in the immediate vicinity of the ore zone. Diorite-gabbro dykes occur in a zone along the southern margin of the alteration zone that envelops the ore.
Approximately 70% of the ore zone is composed of massive sulphides, with the remaining 30% being disseminated sulphides. The massive ore consists of pyrite with varying proportions of interstitial pyrrhotite, chalcopyrite, sphalerite, arsenopyrite and inclusions of quartz-feldspar gangue. The disseminated ore consists of the same sulphide assemblage, but contains a higher percentage of silicate minerals.
"The distribution of copper (Cu) and zinc (Zn) is generally inversely proportional. Higher copper values occur in the core, eastern extremity, and western mid-section of the ore zone. The zinc values are found along the footwall and hangingwall contacts and concentrated on the western side of the copper zone. The copper grades increase with depth and zinc grades decrease” (Fox mine Report, Sherritt Gordon Mines Limited).
ASSOCIATED MINERALS OR PRODUCTS OF VALUE
Zinc, gold, silver, pyrite, cadmium
HISTORY OF EXPLORATION AND DEVELOPMENT
The Fox Lake property is located 45 km southwest of Lynn Lake, and is accessible via Provincial Highway No. 396 from Lynn Lake. McVeigh Siding, 29 km northeast of the Fox mine, is the nearest railway station.
The area was first staked, under the Fox group of claims, in 1947. Stanton (1949) reported "a sparse dissemination of fine pyrrhotite" and a "magnetic anomaly" in the area. The claims lapsed in 1948.
An airborne EM/Mag survey was carried out by Canadian Nickel Company Limited in 1954, under Airborne Permit No. 5 (Non-confidential Assessment File No. 91615). Another airborne EM/Mag survey was carried out by Selco Exploration Company Limited in 1960, under Airborne Permit No. 31 (Non-confidential Assessment File No. 91626).
Airborne electromagnetic and magnetic surveys, done by Sherritt Gordon Mines Limited in 1960, indicated several anomalies in the area. A ground EM survey in January 1961, located one of the anomalies - a copper-zinc deposit at Fox Lake. The first diamond drill hole on the anomaly intersected 39.7 m of mineralization averaging 0.45% Cu.
The property was staked (88186) in February 1961, by R.D. Falconer, and assigned to J.R. Muter, in December of the same year. Early in 1961, Sherritt Gordon Mines Limited let a contract to Canadian Longyear for diamond drilling on the sulphide deposit. Erratic values in copper and zinc resulted from X-ray drilling. By the end of 1961, a 41-hole 8014 m (26 292 ft) diamond drill program outlined the deposit to a depth of 305 m (1000 ft). Milling tests indicated high recoveries and good separation of copper and zinc. To protect the area, Sherritt Gordon staked blocks of claims. Surface drilling, during the next 4 years, indicated reserves of 11 133 400 tonnes (t) averaging 1.75% Cu and 2.35% Zn to the 610 m (2000 ft) level.
In 1962 and 1963, a limited amount of work, chiefly surveys was done, in connection with Fox Lake. In 1964, a stripping job was undertaken in preparation for selection of a shaft site. A program of deep drilling showed that the deposit continued to depth, three holes intersected the deposit at depths of 457-564 m (1500-1850 ft). The average grade was 1.63% Cu, 1.23% Zn across a horizontal width of 13 m (43 ft) (Gobert, 1965). In the same year, a winter road was cut from Fox Lake to Lynn Lake.
In May 1965, the property was assigned to Sherritt Gordon Mines Limited (N.P.L.) and a large-scale underground development program began. In addition to reserves of 11 133 400 t, a large tonnage of massive pyrite carrying 0.41% Cu and 2.38% Zn was discovered in the walls of the deposit.
In October 1966, a 21-year lease (M-8001) was issued to Sherritt Gordon. The mining plant, from the EL mine at Lynn Lake (See: Mind No. 637), was transported to Fox Lake and re-erected. A portion of the orebody was stripped off and approximately 907 t of ore was quarried and transported to Lynn Lake for test purposes.
In 1967, the shaft was sunk to 405 m (1327 ft) and levels were established at 122, 244, and 366 m (400, 800 and 1200 ft) below surface. Copper, zinc and pyrite concentrates were produced from sulphides in the pilot mill (the pyrite was shipped to Fort Saskatchewan for experimental work). The ore was not difficult to mill, being similar in this respect to the ore from the old mine at Sherridon, Manitoba(See: Mind No. 839). Concentrates from Fox were trucked 29 km from the mine to McVeigh Siding. Surface lease M-123 was issued to Sherritt Gordon in 1967.
In 1968, agreement was made with Mitsubishi Metal Mining Company Limited, and Mitsubishi Shoji Kaisha Limited, of Japan, for sale of the fox mine’s total output of Cu concentrate, for the first ten years production. Agreement for the sale of zinc concentrate, for the first five years of production, was made with Hudson Bay Mining and Smelting Co. Limited (H.B.M. & S.) of Flin Flon, Manitoba.


During 1968, the production shaft was completed to 713 m (2340 ft) and lateral development work and underground diamond drilling were started. Crosscuts on the 366, 488 and 610 m (1200, 1600 and 2000 ft) levels were driven through the orebody, and footwall drifts were started to the east ,on the 488 and 610 m levels. Diamond drill intersections on these two levels partially defined the orebody. The western section of the orebody was located, but not defined. The transmission line from the Laurie River generating station to the Fox mine was finished, and a spur road was built to McVeigh Siding on the CN Railway.
In 1969, underground development included 3450 m (11 320 ft) of drifting, 2041 m (6695 ft) of raising, and 12 649 m (41 499 ft) of diamond drilling. Crosscuts were driven to the orebody on the 122 and 244 m (400 and 800 ft) levels. The "A" rock hoist from Lynn Lake (See: Mind No. 636) was moved to the Fox mine and erected for use as the main hoist.
Construction at Fox was completed by May 1970, and the official opening took place in September. "The orebody is divided along its strike length into 100-foot (31 m) stopes, separated by 45-foot (14 m) pillars which extend from footwall to hangingwall. The method of mining the ore is blasthole open stoping with delayed fill" (Fox mine Report April 1976, Sherritt Gordon Mines Limited). Ore was drawn from two stopes on the 366 m (1200 ft) and 610 m (2000 ft) levels. Diamond drilling in the west end of the orebody, together with regular outline drilling, added to the ore reserves.
In 1971, the Fox mine fulfilled expectations, operating at a designed capacity of 2722 t daily - producing a Cu concentrate assaying 25% Cu and 1.6% Zn, and a zinc concentrate assaying 51.0% Zn and 1.6% Cu. Minor amounts of gold and silver were recovered from the copper concentrate, and minor cadmium from the zinc concentrate. Backfilling of the first stope started towards the end of the year, and diamond drilling below the 610 m (2000 ft) level outlined additional ore down to the 914 m (3000 ft) level. Calculated reserves below the 610 m (2000 ft) level were 2 958 300 t averaging 2.83% Cu and 1.35% Zn. Total indicated ore reserves at the end of 1971, were 13 157 900 t averaging 1.99% Cu and 2.35% Zn.
An airborne EM/Mag survey was carried out by Sherritt Gordon Mines Limited in 1972 under Airborne Permit No. 105 (Non-confidential Assessment File No. 91696).
In 1973, work commenced on deepening the mine from the 610 m (2000 ft) to the 671 m (2200 ft) level by means of an access decline. By the end of the year, Sherritt Gordon took over much of the development work, which had been previously performed by a contractor. More detailed underground diamond drilling reduced the ore reserves to 10 707 800 t averaging 2.03% Cu and 2.15% Zn. Rock geochemical sampling was done at 6-31 m (20-100 ft) intervals for a distance of 518 m (1700 ft) across the orebody at the 640 m (2100 ft) level crosscut to study sulphide haloes and wall rock alteration associated with the deposit (Stephenson, 1973).
In 1974, the decline was completed to the 671 m (2200 ft) level, and stope development work commenced below the 610 m (2000 ft) level. In 1975, exploratory drilling was being planned for the entire property (Sherritt Gordon, Annual Report 1975).
Production leases P.L. 10 to 13 were issued to Sherritt Gordon Mines Limited in 1975. The access decline was being extended to the 732 m (2400 ft) level that year. Also, in 1976, an airborne EM/Mag survey was carried out by Questor Surveys Limited for the Manitoba Government (Non-confidential Assessment File No. 91990). Underground mapping at the 640 m (2100 ft) level, surface mapping, as well as logging and sampling of five drill holes, was carried out by Lustig (1979). An alteration zone study, using samples from the 640 m level, was done by Turek et al. (1976) and a mineralogical study was done by Grice (1976).
In 1977, the access decline was completed to the 732 m level and a drilling program was done at that level, early results were 'encouraging'. Pillar recovery supplied 58% of the total mine output in 1977. Surface geological mapping (1:50 000) was carried out by Zwanzig (1977).
Reconnaissance mapping (1:63 360) and rock geochemical sampling was done by Falconbridge Nickel Mines Limited in 1977, under a joint venture agreement with the Manitoba Government (Non-confidential Assessment File No. 92217).
Development work in 1978 was mainly related to stope access and preparation. A stoping method using 16.5 cm (6.5 inch) diameter blastholes was successfully introduced. Work continued on deepening the mine to the 762 m (2500 ft) level, to facilitate drilling to 1052 m (3450 ft).
In 1979, the decline was deepened to the 756 m (2480 ft) level and drilling done on that level was 'inconclusive', although all six holes intersected the ore horizon, with the deepest intersection at 1219 m (4000 ft). The first two holes intersected mineralization between 914 m and 1036 m (3000 and 3400 ft). Another hole intersected mineralization near 1097 m (3600 ft). According to the Canadian Mining Journal (December 1979, p. 13), deep drilling in the eastern extension of the mineralized zone gave 'negative' results. Development of the west lens stope was underway on the 610 m (2000 ft) level in 1979, and mineable tonnages were found. Surface drilling and geophysical surveys continued that year.
In 1980, the access decline was completed to the 792 m (2600 ft) level and access drifts were being developed to the west lens and the main ore zone at that level. Surface exploration drilling to the south and west of the main ore zone was continuing, as well as reconnaissance geological and geochemical exploration work. An IP survey of the area was started that year.
In 1981, the main haulage decline was completed to the 823 m (2700 ft) level and access drifts to the main lens and west lens stopes at the 792 m level and to the west lens stope at the 671 m (2200 ft) level were completed.
The installation of a borehole hoisting system, to hoist ore from the 853 m (2800 ft) and 792 m (2600 ft) levels to the 610 m (2000 ft) level, was started in 1982. The mine was shut down for 15 weeks, starting on June 19, 1982.
The borehole hoist installation was completed in May 1983, and the access decline was completed to the 853 m (2800 ft) level that year. It was announced that the mine would close in three years (Winnipeg Free Press, April 12, 1983).
A study was undertaken by Sherritt Gordon Mines Limited, University of Manitoba and the Manitoba Government to document the geological setting of the Fox mine area and to assess the potential for finding similar mineralization in the surrounding area (Olson, 1984). Mapping and sampling was done in a 3 square km area and ten exploration drill holes were re-logged.
High grade copper ore in the lower levels couldn't be mined due to unstable ground conditions (Sherritt Gordon, Third Quarter Report, 1984). The mine closed on November 29, 1985. A total of 11 958 182 t of ore grading 1.82% Cu and 1.78% Zn were milled to closure (Olson, 1987).
In April 1988, Sherritt Gordon Mines Limited was renamed Sherritt Gordon Limited. The property was transferred to Hayes Resources Inc. in June 1988. Hayes Resources was owned by American Barrick Resources Corporation, DCC Equities Ltd. (a subsidiary of Dynamic Capital Corporation) and International Pursuit Corporation (Winnipeg Free Press, February 12, 1988). American Barrick Resources Corporation and DCC Equities Ltd. each held approximately a 50% interest in Hayes Resources Inc. in March 1988 (Canadian Mines Handbook, 1988-89).
Hayes Resources Inc. purchased Sherritt Gordon's controlling shares in SherrGold Inc. for $17 million and renamed the company LynnGold Resources Inc. (Northern Miner, November 6, 1989). LynnGold Resources Inc. purchased mine and mill assets of the Fox mine from Hayes Resources and acquired mineral rights to the property in July 1988.
In March 1989, American Barrick Resources Corporation and DCC Equities Ltd. each held a 26% interest in Hayes Resources Inc., which controlled 62% of LynnGold Resources Inc. (Canadian Mines Handbook, 1989-90). LynnGold Resources Inc. filed for bankruptcy on December 8, 1989 (Globe and Mail, December 15, 1989). Their assets in Lynn Lake, including the Fox mine was held in trust by DCC equities until 1993, when they were purchased by Black Hawk Mining Inc., as part of the Keystone Gold Project (See: Mind 640 1043 and 969). As of 2002, no further work has been done on the property.
HISTORY OF PRODUCTION
Production at Fox commenced in 1970, and by 1971, it was operating at the rate of 0.9 million t per year. Method of mining is by sublevel open stoping. High recoveries and separation of the copper and zinc can be made, with copper concentration running better than 25% and zinc concentrates running 50% Zn. Minor amounts of gold and silver were recovered from the copper concentrate, and minor cadmium from the zinc concentrate. Table 1 gives production figures from 1970 to 1985. Table 2 gives ore reserve figures from 1964-1984.

Table 1. Production figures, 1970-1985.

Year Milled Cash Tons Cu Conc. Zn Conc. Prod
(000) % Cu (tonnes) (000 lbs.) (000 lbs.) /Ton
1970 389 (353) 3.07 1.13 20 545 192
1971 1 022 (927) 2.86 1.54 55 039 11 318 $7.34
1972 946 (858) 2.14 1.40 36 256 10 898 $8.08
1973 963 (874) 2.01 2.07 34 631 16 703 $9.65
1974 1 008 (915) 2.10 1.98 39 239 18 799 12.70
1975 1 007 (914) 1.74 1.81 31 493 21 750 14.94
1976 832 (755) 1.56 1.68 24 232 18 904
1977 890 (808) 1.46 1.93 24 042 24 841
1978 964 (875) 1.31 1.79 22 349 25 206
1979 852 (773) 1.19 1.82 18 108 23 097
1980 864 (784) 1.40 1.56 21 458 18 152
1981 809 (734) 1.42 1.73 20 486 19 341
1982* 471 (427) 1.76 1.77 15 270 11 443
1983 611 (554) 2.1 1.94 23 812 16 745
1984 731 (663) 1.62 2.2 20 986 24 782
1985 231 (210) 1.88 2.09 (1st quarter production)
1985 224 (203) 1.77 2.14 (2nd quarter production)
*37 weeks production
Source: Sherritt Gordon Mines Limited, Annual Reports.


Table 2. Ore reserves (undiluted), 1964-1984.
Ag g/t (000)
Tons Au g/t
(Tonnes)
Year % Cu % Zn (oz/ton)* (oz/ton)*
1964 12 100 (10 980) 1.72 2.28
1965-68 12 269 (11 133) 1.74 2.35
1969 11 300 (10 254) 1.96 2.74
1970 13 100 (11 887) 1.84 2.70
1971 14 500 (13 158) 1.99 2.35
1972 13 300 (12 069) 2.01 2.23
1973 11 800 (10 708) 2.03 2.15
1974 10 700 ( 9 710) 1.95 2.07 10.29 (0.3) 0.34 (0.01)
1975 8 700 ( 7 895) 1.92 2.08 10.29 (0.3) 0.34 (0.01)
1976 7 836 ( 7 111) 1.95 2.10 13.71 (0.4) 0.34 (0.01)
1977 7 093 ( 6 436) 1.83 2.12 10.29 (0.3) 0.34 (0.01)
1978 6 333 ( 5 747) 1.79 2.22 5.14 (0.15) 0.17 (0.005)
1979 5 917 ( 5 369) 1.77 2.21 4.69 (0.137) 0.17 (0.005)
1980 5 411 ( 4 910) 1.78 2.29 5.14 (0.15) 0.27 (0.008)
1981 2 608 ( 2 367) 1.94 1.59
1982 1 910 ( 1 733) 2.34 1.58 14.06 (0.41) 0.48 (0.014)
1983 1 299 ( 1 179) 2.47 1.57
1984* 696 (, 632) 1.80 2.42 9.94 (0.29) 0.34 (0.01)

Source: Sherritt Gordon Mines Limited, Annual Reports.
*Estimated values, Energy, Mines and Resources Canada, Mineral Bulletins
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Geological Survey of Canada 1985: Maps C 21087G, C 41087G, 64C/12g, h; Geological Survey
of Canada, aeromagnetic map, Total Field and Vertical Gradient, scale 1:20 000.

Geological Survey of Canada 1986: Map Northwest Manitoba, GSC Open File 1204, Geological
Survey of Canada, till geochemical survey, scale 1:250 000.

Gilbert,H.P, Syme, E.C, Zwanzig, H.V,. Keay, J.P, Thomas, M.W. 1978: Preliminary Map
1978 L-1 Lynn Lake area; Manitoba Mineral Resources Division, geological map,
scale 1:100 000.

Gilbert, H.P., Syme, E.C. and Zwanzig, H.V. 1980: Map GP80-1-3 Laurie Lake; 1:50 000 scale
geological map, accompanying Manitoba Mineral Resources Division, Paper GP-80-1-3.

Hosain, I.T. 1981: Map OF81-5-4A/4B Laurie Lake area; 1:50 000 scale, compilation of airborne
EM and ground geophysical surveys, accompanying Manitoba Mineral Resources Division, Report OF81-5.

Kaszycki, C.A. 1989: Maps 64C (As, Au, Cr, Ni, Cu, Zn, Mn, U, Pb, Fe); 1:1 000 000 scale
computer-generated colour contour maps, accompanying Geological Survey of Canada, Open File 2118.

Kaszycki, C.A., Way Nee, V.J. 1986: Map Granville Lake; GSC Open File 1258, Geological
Survey of Canada and Manitoba Energy and Mines, surface geological map, scale
1:125 000.

Kaszycki, C.A., Way Nee, V.J. 1990: Map 1759A Granville Lake, Manitoba, Geological Survey of
Canada, surface geological map, scale 1:250 000.

Manitoba Energy and Mines 1986: Map 64C, Granville Lake, Bedrock Geology Compilation Map Series, Manitoba Energy and Mines, geological map, scale 1:250 000.

Manitoba Mines Branch: Map 64C/12 NE Claim Map Series, Circa 1975; Mining Recording,
Manitoba Mines Branch, scale 1:31 680.

Manitoba Mines Branch and Geological Survey of Canada 1963: Map 2373G Laurie Lake,
aeromagnetic map, scale 1:63 360, Manitoba Mines Branch and Geological Survey of Canada.

Milligan, G.C. 1960: Map No. 4 Laurie Lake; 1:63 360 scale, geological map, accompanying
Manitoba Mines Branch, Publication 57-1.

Milligan, G.C. 1960: Map No. 10 Lynn Lake district; 1:126 720 scale, generalized geology and
sulphide occurrences, accompanying Manitoba Mines Branch, Publication 57-1.

Province of Manitoba, Geological Survey of Canada 1978: Map 35364G Granville Lake, Province
of Manitoba, Geological Survey of Canada, airborne Gamma Ray Spectrometry, scale 1:250 000.

Province of Manitoba and Geological Survey of Canada 1985: Maps C 21092G, C 41092G Laurie
Lake; Province of Manitoba and Geological Survey of Canada, aeromagnetic Total Field and Vertical Gradient, colour compilation maps, scale 1:50 000.

Rice, H.M.A. 1950: Map 1016 A, Reindeer Lake, Saskatchewan-Manitoba; Geological Survey of
Canada, geological map, scale 1:506 880.

Stanton 1949: Map 48-4 Dunphy Lakes area; 1:31 680 scale, geological map, accompanying
publication by Stanton (1949), Manitoba Mines Branch.

Surveys and Mapping Branch: Map 64 C/12 Laurie Lake; Surveys and Mapping Branch,
Ottawa, topographic map, scale 1:50 000.

Zwanzig, H.V., Preliminary Map 1984 C-2 Granville Lake; Manitoba Mineral Resources Division
geological map, scale 1:250 000.
URL
N/A
Images
Images/0622-1
REMARKS
By December 31, 1972, of the outstanding shares, 36% was held by Newmont Mining Corporation and 53% was held by Canadians (Task Force, 1974).
A symbol locating the mine is printed on Figure 30 (see Davies et al., 1962).
NOTE: 10 holes on 'a claim group' near the Fox mine intersected a 'potentially mineable zone containing copper and zinc' (Sherritt Gordon Mines Limited, Annual Report 1979).
NOTES
Revised 03-03
Compiled/Revised by:
?; DEK; PA; JJJ
Date
01-71 02-73; 06-75; 11-90; 05-02