Holloway shaft at 45 metres

Shaft-sinking at the Holloway gold project near Matheson, Ont., has reached a depth of about 45 metres, according to a progress report by operator Hemlo Gold Mines (TSE).

Advancing at a rate of a few metres per day, Hemlo hopes to complete the 430-metre exploration shaft by the end of March. A drifting and bulk-sampling program is expected to begin in May, followed by an underground drilling program.

Holloway is a joint venture of Hemlo with a 50.79% interest, Freewest Resources (TSE) with a 33.86% interest and Teddy Bear Valley Mines (CDN) with a 15.35% interest. Preliminary reserves are estimated to be five million tonnes grading 9.2 grams per tonne (0.27 oz. per ton).

Most of the surface facilities, including a headframe, hoist house and a number of service buildings are in place and a one-kilometre-long service road now connects the site to Highway 101.

A total of 30 employees, 26 employed by contractor J.S. Redpath, are on site. Meanwhile, Teddy Bear has raised $158,000 through a private placement of 100,000 shares with a purchaser at arm’s length.

Partial proceeds from the transaction will be used for working capital and operating expenses.

The remainder will pay for expenses not eligible for flow-through subscription but that have been incurred by Teddy Bear in financing its share of the Holloway project.

Cross examinations related to Teddy Bear’s plan to reverse a 1984 restructuring are still in progress.

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