Share prices of Toronto-listed Goldpost Resources jumped from $1.60 to a new high of $2.75 last week, one week before the company’s Class B warrants become due.
Asked for an explanation at the company’s annual meeting, Presi dent Patrick Heenan said there were no new assay results reported to explain the price move. “I hope it was the result of new investor interest and enthusiasm for our company,” he said.
The warrants, which traded this week at 90 cents , entitle holders to purchase one share in the company at $1.30.
Should all 900,000 warrants be exercised, as seems likely, Goldpost will net $1.17 million. Together with some $2.2 million expected to be raised from its class A warrants later this year, some $1.36 million in flow-through funds and $1.1 million from National Investors Management (nim), Goldpost expects to have $4.4 million available for exploration work this year in northeastern Ontario.
The company has two properties just north of the former-producing Ross mine in Hislop Twp., east of Timmins, Ont. Mining contractor Patrick Harrison has driven a 1,100-ft decline on the Hislop West property, intersecting a 14.5-ft section grading 1.48 oz gold per ton. Some 15,000 ft of underground drilling is scheduled, starting this month. This program may, however, be extended to 35,000 ft, Mr Heenan says.
On the Hislop East property, drilling from surface has doubled total tonnage factors in three separate gold zones, from 850 tons per vertical foot to 1,610 tons averaging 0.20 oz gold per ton. Drill- indicated reserves cannot be calculated until the vertical continuity of the zone is tested.
The South zone is the most promising with four holes intersecting ore grade widths ranging from 27 ft to 60 ft.
A 475-ft shaft and 4,500 ft of horizontal development on four levels was completed on the Hislop East ground by previous property- owners. But the timber headframe has since burned down. To regain access will require considerable expense in the order of $2.2 million.
A 20,000-ft drilling program from surface, using two drills, is underway.
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