ANNUAL REPORT REVIEW — Franc-Or drills in French Guiana

Montreal-based Franc-Or Resources (FOR-T) has begun drilling at its St.

Pierre property in northwestern French Guiana.

The 3,000-metre program is testing the downdip extent of the North Body structural feeder zone, as well as the lateral continuity of the east-west-trending North Body oxide cap, both of which were identified by the Bureau de Recherches Geologiques et Minieres (BRMG), an agency of the French government.

Funding will be provided by Homestake Mining (HM-N), which can earn a 70% interest in the 50-sq.-km property by spending $2 million over two years.

Previous work on the North Body oxide cap included five diamond drill holes sunk to between 57 and 164 metres, and 725 auger holes with an average depth of 6 metres. The auger holes delineated the oxide cap to 1,800 metres in length and 800 metres in width, and indicated an average grade of 1.57 grams gold per tonne.

Results from two of the diamond drill holes returned true widths of 13 metres grading 2.2 grams and 20 metres of 2.92 grams. Both holes intersected mineralization at a depth of less than 70 metres.

To date, Franc-Or and Homestake have completed 935 soil samples over 79 line km, and collected 92 rock-chip samples. In the process, it has outlined a strongly mineralized, structurally controlled, north-northwest-trending zone with a strike length of 4 km and a width of up to 600 metres. Also outlined was a second, 14-km-long, east-west-trending structural zone containing only intermittent mineralization.

New zones of mineralization were also identified in the eastern, western and southern portions of the property. Mineralization in the east appears to be associated with the contact zone of a large granodiorite intrusion that exhibits zoned alteration halos of kaolinite and sericite. The companies believe this occurrence may indicate the presence of a larger mineralized system.

The initial drill program is expected to be completed by the end of March, when results will be released.

Meanwhile, on the Haute Mana project in central French Guiana, Franc-Or is in the midst of a 2,500-metre diamond drill program designed to test the Nicole prospect.

The company holds a 40% interest in the 121.5-sq.-km property, and can earn up to 80% from BRGM.