Coxheath going underground at Tangier, N.S.

A $3-million underground program is slated for Coxheath Gold Holding s’ Tangier property with $500,000 to be spent before the end of January, 1987, reports President Michael Riddell.

The property is located about 60 miles east of Halifax, N.S., just south of the Beaverdam discovery being developed by Seabright Resources.

Mr Riddell says diamond drilling has confirmed that at least three parallel gold-bearing zones of ore grade are present on the property with visible gold identified in all 25 holes drilled to date.

With only half of the assays available, the results are encouraging enough to warrant the underground program to open up the gold-bearing zones for bulk testing. A decline was scheduled as part of the program.

A second stage of drilling has started on the company’s Beaverdam ground by joint venture partner Seabright Resources. Coxheath’s 22-claim piece of ground adjoins the Seabright Beaverdam property on the west side.

So far, a total of $215,000 has been spent on exploration, and option payments amounting to $200,000 have been made to Coxheath. An additional $300,000 must be spent by Seabright before Jan 31, 1987, in order to earn a 50% interest in the property.

Coxheath Chairman John Riddell says early results are very encouraging and indicate that the ore-bearing structure at Beaverdam continues westward onto Coxheath’s ground along strike. A deep hole, collared on Coxheath ground, is being drilled by Seabright to test the down-dip extension.