Almaden finances exploration work for gold, silver

Almaden Resources has raised $420,000 in a best efforts offering to explore three precious metals properties. The financing increases the company’s working capital to approximately $500,000, the bulk of which will be spent on a silver property in Nevada and two other prospects (silver and gold) in Canada.

The Nevada property, which has been worked on a small-scale basis for a number of years, was originally looked at as a porphyry copper situation. President Duane Poliquin notes there is a “huge alteration” zone on the property with excellent potential for hosting some bonanza-grade silver ore. Open pit mining in 1983-84 yielded 28 tons of concentrate which netted $20,000 in smelter returns. A $91,000 program is scheduled to begin shortly and Almaden can earn a 100% interest.

Another $69,000 will be spent on the company’s Munroe Lake property near Brenda Mines at Peachland, B.C. Occidental Petroleum held and explored the property intermittently until the claims lapsed in 1985. It was then restaked by Almaden. Regional and local geochemical data indicate a significant silver source on the Munro Lake property and work is scheduled to begin immediately.

The company’s only gold property at present is located 40 miles from Flin Flon, Man., where several companies (including Granges Exploration) are evaluating and developing new gold discoveries. Known as the Elbo Lake property, the Geological Survey of Canada has reported values ranging from 0.1 to 0.18 oz gold across 100-ft widths on one part of the property. The $95,000 program will include some geophysics this winter and more detailed work next summer.