Canamax has discovery near Kremzar property

A new gold discovery has just been added to the portfolio of Toronto-listed Canamax Resources.

The site of the discovery is at its wholly-owned Lochalsh project, located in the Goudreau gold belt 35 km northeast of Wawa, Ont. It is found just 2 km south of the company’s Kremzar gold property which is high on the company’s list for future production.

At Lochalsh, nine holes were drilled to test the strike and depth projections of several narrow, moderate grade intersections encountered in four reconnaissance holes drilled late last year.

The best results so far are in holes No 8, 9 and 12 drilled on section, 30m west of Hole No 1, the 1986 discovery hole, says the company. These three holes, testing a vertical range of 60 m, returned a combined average of 30.9g over 5.3 m (11.33 g/tonne if assays are cut to 1 oz) in a steeply dipping zone, designated as Zone No 5.

The equivalent intersection in the discovery hole assayed 6.2 g over 3.5 m.

Drilling has also intersected a second parallel zone, called Zone No 7, some 30 m south, which returned values ranging from 3.0 g over 1 m to 29.3 g over 2 m. Both zones, in addition to a number of parallel ones, are open on strike and at depth.

The mineralization is related to the Goudreau Lake shear, a regional structure trending in an east-northeast direction through Goudreau Lake.

Although close to the shore, the zones underlie the lake and a concerted effort was made to complete as much drilling from the ice as possible.

However, early breakup now dictates further drilling will continue from the shore both east and west of the discovery area.

So far, approximately $250,000 has been spent on the Lochalsh program with in excess of a further $1 million anticipated to be spent this year on this project as well as on adjacent property.

The company says it is still too early to estimate reserves on the new find, but it is enthusiastic about the positive impact it might have on the Kremzar project where a feasibility study has just been completed and where a production decision is currently being considered.

Reserves at Kremzar stand at 1.1 million tons grading 0.235 oz gold per ton. Should go-ahead be given production would start in mid- 1988 after development costs of $16 million.

Canamax trades on the tse where it has new-highed at $10.50. Hole Zone Intersection Grade

(m) (ft) g/t oz/t 1 5 3.5 11.5 6.2 0.18

7 2.0 6.6 6.3 0.18 2 5 2.0 6.6 4.1 0.12 3 5 1.0 3.3 8.6 0.25 4 5 4.0 13.1 2.1 0.06

7 2.0 6.6 2.8 0.08 7 5 1.0 3.3 3.5 0.10

7 2.0 6.6 29.3 0.85 8 5 7.0 23.0 61.7 1.79

2.0 6.6 10.6 0.31

7 3.5 11.5 8.7 0.25 9 5 5.0 16.4 7.5 0.22

7 4.0 13.1 2.8 0.08 10 5 low values

7 11 5 11.0 36.1 2.7 0.08

7 1.0 3.3 3.1 0.09 12 5 4.0 13.1 6.4 0.19

3.0 10.0 4.6 0.13

7 3.0 10.0 2.4 0.07 13 5 3.0 10.0 3.7 0.11

7 1.0 3.3 3.1 0.09 14 overshot zone 5

7 4.0 13.1 2.0 0.06 15 7 2.0 6.6 6.4 0.019

Holes 5 and 6 were drilled elsewhere on the property. Holes 1 to 6 drilled in 1986, while balance drilled this year.