Initial reserves of 500,000 tons reported by Granges, MacMillan

Initial ore reserve calculations at the Granges Exploration-MacMillan Energy Mishi Lake project in northwestern Ontario reveal more than 500,000 tons grading 0.18 oz (cut) gold per ton, the companies report.

Granges, which is earning a 50% interest in the property and acting as operator, reports reserves are expected to increase substantially with additional in-fill drilling and because of an indicated potential extension of the ore zone.

“Based on the current drill hole parameters, an orebody in the range of 2.5 million tons can now be foreseen,” MacMillan President Anthony Agostino said.

The joint-venture partners are optimistic current indicated grades may improve by up to 30% when underground testing commences in early 1988. That optimism is based on results from the separate Magnacon gold project which is completely surrounded by the Granges- MacMillan holdings. MacMillan reports that recently completed sectioning and petrographic studies confirm the ore is carried in a cherty tuff horizon, the full extent of which has not yet been determined.

Recent drilling has located gold intersections, similar to that of the main zone, at two locations on the property situated 2,500 ft-5,500 ft west of the main zone, the company said. Additional drilling results are expected soon.

A $4.5-million exploration program, involving an 820-ft decline and an additional 50,000 ft of drilling on the main zone and the two new locations as well as continued anomaly testing of the large property, is planned to run until June, 1988.