Lamaque drilling cuts more gold

Drilling by Kalahari Resources (KLA-V) at its Lamaque project in northwestern Quebec has returned more gold intersections.

Kalahari recently tested two magnetic anomalies, T-06 and T-03, on the property. At T-06, east of the former-producing Lamaque mine’s “Main Plug” intrusion, a single drill hole intersected three zones of gold mineralization.

The first zone, at about 88 metres vertical depth, intersected 2.1 metres grading 6.4 grams gold per tonne, including a narrow (0.3-metre) zone that ran 38.4 grams per tonne. A second zone immediately below the first graded an average 10.1 grams gold per tonne over a 1.4-metre intersection.

A second zone, at about 185 metres vertical depth, cut a 1.5-metre interval grading 8.9 grams gold per tonne.

At magnetic anomaly T-03, about 0.5 km southwest of T-06, another hole intersected 1.7 metres grading 7.7 grams gold per tonne.

The company has closed a private placement of 2 million units at 25 each, each unit consisting of a share and a purchase warrant expiring at the end of January 2007. The warrants are exercisable for 30 until January 28 of next year, with the exercise price rising by 5 in each succeeding year until expiry.