Silverside finds gold-bearing zone at Garrison Twp.

A new gold-bearing zone has been discovered on its Garrison Twp. gold property in northeastern Ontario, reports Silverside Resources.

And on its Cobalt silver property work is continuing toward an early March production decision, says President Leith Hellens. A ventilation raise that will double as a production shaft is being driven from the 240-ft level accessed by a 2,800-ft decline shaft.

On the Garrison gold project diamond drill hole No 22 encountered a 7.8-ft-wide zone assaying 0.304 oz gold per ton.

Drill results include: Hole Interval Width Grade

(ft) (ft) oz/ton 18 92-127 35 0.10 including 92- 97 5 0.45 19 399-400 1 0.32 22 248-249.6 1.6 0.235

277-284.8 7.8 0.304

306-318.6 12.6 0.083

Silverside says these results are significant in that the new gold bearing zone discovered in hole No22 occurs in a previously undrilled area 80 ft north of Zone 6. Zone 6 contains 40,000 tons of ore grading 0.24 oz gold per ton and is open pitable.

Hole No22 completes phase I of the exploration program, says the company. Because of the gold values obtained during this phase, Silverside is immediately starting on phase II, which includes an IP survey to outline the new zone and about 18,000 ft of diamond drilling on 100-ft centres in 100-ft tiers under Zone 6 and previously known Zone 5.

Mr Hellens says he is confident funding for the second phase will be arranged.

At the Cobalt silver property, preliminary estimates based on bulk sampling indicate ore will run at a grade of 25-30 oz silver per ton. Using a figure of 20 oz per ton to be conservative, and a milling rate of 150 tons per day, Mr Hellens estimates mining, milling, trucking and refining will cost about $4(US) per ounce of silver produced.

Work on blocking out reserves with a target of outlining 150,000 tons, enough for three years of production, is currently under way.

Once a production decision is reached, the capital cost for putting the property into production is estimated to be quite low, about $250,000 for Silverside and the same for its 50% joint venture partner International Platinum.

Mining will be done on a contract basis and milling will likely be done at a mill owned by a third company, but construction of a new mill is being considered.

The two companies have spent about $4.5 million on the Cobalt project, Silverside having put up $1.25 million of that since 1981 and International Platinum the rest since joining the project in 1984.