Zenco drilling in Squall Lake

Zenco Resources has completed a 11,000 ft drilling program on its Squall Lake property at Snow Lake, Man.

Located five miles north of a gold deposit with announced reserves of 426,000 tons grading 0.302 oz gold per ton, the property is held by Snow Lake Mines Ltd.

Gold minalization on the Squall Lake property is found in nine zones occurring at or near the upper contact of a mafic sill with clastic metasediments. The auriferous horizon has been traced over 5-6 mile strike length on the property.

The 1987 drilling tested the Margaret Extension Zone of gold mineralization, partially drilled in 1981 and in 1984 by Barrick Resources. Drill holes 87-1 to 87-4 retested some of the better gold intersections encountered by Barrick. The remainder of the holes were planned to test trends of higher grade gold mineralization expected to occur within the Margaret Extension zone, not fully delineated by the previous drilling.

Results of the 1987 drilling indicate gold occurs in the free state associated with arsenopyrite and quartz. The best intersections include: hole 87-4 which cut a 10-ft section assaying 0.49 oz.

The section included a 3.3 ft cut averaging 1.45 oz. Hole 87-28 intersected a 10 ft section averaging 0.57 oz with a 2.6 ft cut averaging 2.09 oz.

Also, 12 other holes returned values of 0.03-0.08 oz over widths of 3-5 ft. Only 5 holes contained values less than 0.03 oz.

A $250,000 exploration program, managed by Galveston Exploration, will be directed at three target areas including the southwest continuation of the auriferous horizon, mafic volcanics south of the Cleaver Lake Fault and Strike continuation of the gold horizon northeast of the Margaret Extension zone. Follow-up work will consist of approximately 12,000 ft of diamond drilling.