Noranda, partner report new gold find in Newfoundland

The new discovery is located on the Springdale Peninsula, about 10 km west of the town of Springdale. The area has similar geological formations and structures as those hosting recent gold discoveries on the nearby Baie Verte Peninsula.

Noranda reported the recent discovery results to its joint venture partner Major General Resources, a private British Columbia company which holds an option to earn a 50% interest in the property.

Major General is run by two Vancouver lawyers, Byard H. Maclean and Stewart Angus. Company president Byard Maclean was unavailable for comment at press time.

Results just released from 15 holes completed on the Rendell- Jackman property include a number of significant intersections, with highlights as follows:

Width Cut Grade Uncut Hole (ft) (oz/t) (oz/t) 4 21.3 0.35 0.64 5 18.7 0.18 0.19

5.2 0.37 1.2 6 4.3 0.68 1.13

12.8 0.20 0.38 7 8.8 0.33 0.65

15.7 0.51 1.4 15 7.9 0.25 0.36

The above results were obtained from the so called “Hammerdown Discovery Zone” where a trench exposed a 230-ft strike length of gold mineralization averaging 0.37 oz per ton across a width of 12 ft.

All holes were drilled from north to south at 45-50 degrees and assays greater than 1.0 oz per ton were arbitrarily cut to one ounce.

According to Noranda, the mineralization occurs in steeply dipping quartz-carbonate zones associated with felsic dykes in sheared sediments and mafic volcanics.

The discovery started out as a surface soil anomaly which Noranda identified by till sampling last year. The gold does not occur in free visible form, but is associated with sulphide minerals, a Noranda geologist said. Visible gold grains do occur in surface soil samples, probably as a result of the breakdown of sulphides, he added.

The gold zone was drilled along a strike length of 1,300 ft and is open at depth.

The Rendell-Jackman property has a past copper-producing history, but the recent gold results are being deemed a new discovery by Noranda.

There are some 10,000 tons of copper-bearing tailings located near an old adit on the eastern part of the property, Noranda said.

The Rendell-Jackman claim group is located about 45 km southwest of another gold discovery made last year by Bitech Energy Resources (ASE) on that company’s Nugget Pond property.

Noranda spokesman Jim Gibson said additional surface work and more drilling have been recommended. He indicated that a lot more work will have to be done to determine the full extent of the new findings on the Rendell-Jackman property.

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