Deep drilling at Vezza project (May 25, 1992)

Drilling at the Vezza project in Vezza Twp. in northwestern Quebec intersected 0.195 oz. gold per ton across a true width of 12.8 ft. at an approximate vertical depth of 2,000 ft., North American Rare Metals (ME) and Dundee-Palliser Resources (TSE) report.

The intersection is about 300 ft. deeper than any previous intercept. Agnico-Eagle Mines (TSE) has two rigs working on the property. Agnico may earn a 51% interest in the project by spending $7.4 million on exploration work by Dec. 1, 1994.

Two new holes being drilled are designed to cut the zone at depths of 2,000 ft. and 2,500 ft. east and west of the new intersection.

Meanwhile, MVP Capital (TSE) says it plans to sell 2.5 million shares of Dundee-Palliser; it currently owns about 6.1 million shares, or about 50.3%, of Dundee.

Also, subject to regulatory approval, MVP has agreed to subscribe to a private placement of shares and warrants of Dundee worth $225,000. Proceeds will be used to fund the initial expenditures related to the proposed acquisition by Dundee of the Gays River mine in Nova Scotia.