Is there gold in them thar hills?

Pembroke's Big Hill is once again attracting a prospector. This time it is Golden Hope Mines Ltd. of Quebec. The Big Hill prospect is located near Route 214 and Old County Road.

In a September 17 release, Golden Hope Mines President Louis Hoel provided an update on the Pembroke zinc and silver project, stating, "Certain of the company's mineral properties located in Maine were to have been acquired pursuant to a property option agreement announced April 14, 2004. The company has acquired the surface rights to these properties. As a result of uncertainties surrounding the ownership of the subject mineral rights, among other reasons, the option to acquire the underlying mineral rights has not been exercised. The company is in discussions with the optionor to resolve these concerns."

Last spring, an airborne survey was commissioned by Golden Hope Mines, and the company believes the airborne survey shows great potential for numerous mineralized zones in the region. According to the press release, the company is actively negotiating to acquire additional mineral properties in the vicinity of its Pembroke project and has mobilized a diamond drill contractor to test these defined targets. The airborne surveys, with several helicopters equipped with magnetometers, created a stir when no one could confirm the ownership of the low-flying choppers or the purpose of their flights. The sheriff's office, the U.S. Coast Guard, the Federal Aviation Administration, representatives of both proposed liquefied natural gas projects and others denied any knowledge or connection with the flights conducted in the Pembroke area and other area communities. They were right; the helicopters had been retained by the mining company.

The Pembroke property hosts a polymetallic sulphide deposit. Previous exploration work included 36,000 meters of diamond drilling, which defined a resource of 28 million tonnes of zinc, silver, gold and copper.

Company explores property

According to a Golden Hope newsletter, "Management recognizes that large-scale, low-grade mines are vastly more profitable than small high-grade operations, and in the realization the Pembroke prospect may contain a previously unappreciated open-pit potential amenable to low-cost mechanized mass-mining techniques. By doing so, Golden Hope can exploit the full mineral potential of the deposit, recovering not only the silver content but the zinc, lead, copper and gold values as well."

Golden Hope at this time has a geologist on the site who is overseeing the exploration activities. The company is actively negotiating to acquire additional mineral properties in the vicinity of its Pembroke project and has mobilized a diamond drill contractor to test these defined targets.

Henry Berry of the Maine Geological Survey says Golden Hope is doing preliminary exploration to find out if there are mineral deposits on the property. The exploration is at the preliminary level of work, and no permit is needed. If the project goes to the next stage of exploration, the Maine Department of Environmental Protection (DEP) would be responsible for oversight.

Mark Stebbins, DEP mining coordinator, says no official permit is needed to do drilling. Erosion control is required. If there is a viable prospect and the company wishes to develop the site, a metallic mineral mining permit would be required. Such a permit has not been issued since 1991 when legislation was passed that requires the DEP to do oversight work. Removal of the ore, the method of processing and how the work is handled would come under such a permit. Several companies have been prospecting in Maine since the passage of the legislation, but no one has applied for a permit to develop mining sites.

Previous ventures

Big Hill, not to be confused with the Old Dolson Mine, several miles east, has been the scene of several mining ventures over the years.

In 1926, a mining operation existed for a short time. Exploratory drilling was also done in 1964. In 1980, Scintilore Explorations Ltd., a Toronto-based mining corporation, now defunct, conducted exploration activities on Big Hill. At that time, Northeast Drilling Company of Bangor was retained by Scintilore to obtain core drilling samples of the bedrock in the area. The core drilling equipment penetrated the bedrock to a specified depth, probably between 400 and 600 feet.

In 1983 North America Exploration Inc. of Kaysville, Utah, took an option on land located several miles away near Ayers Junction.

Metal mining, especially in areas of low-grade deposits, has been dependent on the price of metals. In the last few years, the price of silver has tripled in value, and gold futures this week topped $800 a troy oz., the highest since 1980. As in all mining operations, the important question is whether or not the deposit is of an ore grade and can be mined at a profit.

Golden Hope is described as a junior mineral exploration company focused on growing shareholder value through the acquisition, exploration and development of potentially large-scale gold and base metal projects. The company is listed on the Toronto Stock Exchange.