Chesbar, Murgold into test milling

The companies — Chesbar has a 60% interest and Murgold 40% — report about 12,000 tons of stockpiled material from underground drifts and raises is being trucked to Timmins, 40 miles away, for custom milling by Giant Yellowknife Mines.

Current reserves at the property stand at 482,226 tons grading 0.25 oz gold per ton, including probable reserves of 71,078 tons grading 0.4 oz. All work to date has been above 500 ft.

Chesbar recently put out tenders for construction of a 150-ton-per- day test mill at the site, but because of market conditions decided custom milling was the appropriate route to follow at the present time.

Meanwhile, Chesbar reports entering into a flow-through share agreement with NIM and Co., Limited Partnership — 1989 for exploration expenditures worth up to $700,000. The agreement is subject to regulatory approval and closing of the partnership’s public offering.

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