Drilling nears completion at Bitech’s Nugget Pond (July 24, 1989)

Drilling results released in January from the company’s Nugget Pond gold bet sparked a flurry of investor interest driving the share price up to a high of $2.25 in February.

“About 18,000 m have been drilled to date in our 20,000-m program at Nugget Pond,” Bitech president James Wade told The Northern Miner in a recent telephone interview. The company will provide details of the drilling results in its upcoming third-quarter statement, said Wade. “We should have a new reserve figure as well as well a discussion of the company’s diversification plans,” he said.

Bitech has been exploring the Nugget Pond property in a joint venture with Equity Silver Mines (TSE). At the end of the drill program Equity Silver will be in a position to make a decision on whether to proceed with the joint venture. If the company decides to continue, it will face a $1.5-million option payment and $10 million in exploration expenditures.

“If Equity Silver decides to back out we have a number of alternatives we could look at,” said Wade, adding that “we have an extremely good working relationship (with Equity) at present.”

Bitech is preparing to remove one of two drills now working on the Nugget Pond property. At the conclusion of drilling, the company will spend the next couple of months reviewing all the data it has obtained before deciding on the next step.

“As it stands, we’re satisfied (Nugget Pond) is a relatively small deposit,” said Wade. “But, in a short period of time we’ve come from a geochemical anomaly to an orebody and that’s an accomplishment.”

The company last released results from the Nugget Pond property in May. Since then the market value of Bitech’s shares has fallen sharply to 45 cents , from earlier highs of more than $2.00.

Wade attributes the share price decline to several factors including a “bearish market sentiment for gold” and general lack of investor interest in junior golds. “The decline is also reflecting the fact that we have a few shares out there,” he added.

At last count Bitech had some 29.5 million shares (fully diluted) issued and outstanding. The following table shows property results compared to the company’s share price movements.

Reserves Share Share Out Month (tonnes) price($) (Million) Dec 226,860 0.65 14.2

13.7 g/t Mar 395,000 1.61 26.0

12.5 g/t May 505,000 0.61 26.0

12.0 g/t July n/a 0.45 29.5

In other news, Bitech reports it has completed the acquisition of 87% of the common shares of Tashogan Minerals, a private company which controls claims adjoining the Nugget Pond property. Exploration work is planned for the Tashogan properties during the current exploration season.

Under the terms of the acquisition, Bitech offered Tashogan shareholders one Bitech unit for five common shares of Tashogan. A unit comprises one Bitech common share plus one common share purchase warrant.

In May, Bitech entered into an agreement with NIM and Company Limited Partnership — 1989 involving the issuance up to one million Bitech common shares in consideration for exploration funds totalling $500,000.

The company has also agreed to acquire from Bryan Wilson & Associates, a 100% interest in two groups of claims near Lac St. Jean, Que. The purchase price was $52,200 and 100,000 common shares of Bitech.

One group of 60 claims is situated at the northwest end of Lac aux Rats and covers magnetic and electromagnetic anomalies. The other block of 69 claims was recently acquired by Blue Emerald Resources (VSE). The above acquisitions are subject to regulatory approval.

With a drill program nearly complete on its Nugget Pond gold property in Newfoundland, Bitech Corp. (ASE) expects to release final results of the work program by month end.

Drilling results released in January from the company’s Nugget Pond gold bet sparked a flurry of investor interest driving the share price up to a high of $2.25 in February.

“About 18,000 m have been drilled to date in our 20,000-m program at Nugget Pond,” Bitech President James Wade told The Northern Miner in a recent interview.

The company will provide details of the drilling results in its upcoming third-quarter statement, said Wade. “We should have a new reserve figure as well as a discussion of the company’s diversification plans,” he said.

Bitech has been exploring the Nugget Pond property in a joint venture with Equity Silver Mines (TSE). At the end of the drill program Equity Silver will be in a position to make a decision on whether to proceed with the joint venture. If the company decides to continue, it will face a $1.5-million option payment and $10 million in exploration expenditures.

“If Equity Silver decides to back out we have a number of alternatives we could look at,” said Wade, adding that “we have an extremely good working relationship (with Equity) at present.”

Bitech is preparing to remove one of two drills now working on the Nugget Pond property. At the conclusion of drilling, the company will spend the next couple of months reviewing all the data it has obtained before deciding on the next step.

“As it stands, we’re satisfied (Nugget Pond) is a relatively small deposit,” said Wade. “But, in a short period of time we’ve come from a geochemical anomaly to an orebody and that’s an accomplishment.”

The company last released results from the Nugget Pond property in May. Since then the market value of Bitech’s shares has fallen sharply to 45 cents .

Wade attributes the share price decline to several factors including a “bearish market sentiment for gold” and general lack of investor interest in junior golds. “The decline is also reflecting the fact that we have a few shares out there,” he added.

At last count Bitech had some 29.5 million shares (fully diluted) issued and outstanding. The following table shows property results compared to the company’s share price movements. 0200,0300,0303,0303,0000, ReservesShareShare Out Month(tonnes)price ($)(million) Dec226,8600.6514.2 13.7 g/t Mar395,0001.6126.0 12.5 g/t May505,0000.6126.0 12.0 g/t Julyna0.4529.5

In other news, Bitech reports it has completed the acquisition of 87% of the common shares of Tashogan Minerals, a private company which controls claims adjoining the Nugget Pond property. Exploration work is planned for the Tashogan properties during the current exploration season.

Under the terms of the acquisition, Bitech offered Tashogan shareholders one Bitech unit for five common shares of Tashogan. A unit comprises one Bitech common share plus one common share purchase warrant.

]]>