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 ³a sparse dissemination of fine pyrrhotite² and a ³magnetic anomaly² 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. Another airborne EM/Mag survey was carried out by Seico Exploration Company Limited in 1960, under Airborne Permit No. 31.
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). 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 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 was issued to Sherritt Gordon. The mining plant, from the EL mine at Lynn Lake was transported to Fox Lake and re-erected. A portion of the orebody was stripped off and approximately 9,071 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.
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 mine¹s 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 ³A² rock hoist from Lynn Lake 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.
³The 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 fill² (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.
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.
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.
In 1977, the access decline was completed to the 732 m level and a drilling program was done at that level, early results were Œencouraging¹. 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.
Development work in 1978 was mainly related to stope access and preparation. A sloping 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 Œinconclusive¹, 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 Œnegative¹; 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. 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 couldn¹t 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.
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 Gordon¹s 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.
