The first phase of an exploration program near the town of Kwe Kwe, Zimbabwe, has turned up a gold discovery, Caledonia Mining (TSE) and its 48%-indirectly-owned subsidiary, Reunion Mining (Zimbabwe), report.
The joint-venture program of Reunion and Blanket Mine (1983), a subsidiary of Falconbridge Gold (TSE), was focusing on a target comprising three anomalies, with a combined strike length of 2,500 metres and occurring under two to 10 metres of Kalahari sand.
Four holes encountered mineralization over widths up to 12 metres. Among the results were 1.75 grams gold per tonne over 12 metres in Hole 1 (area A), 2.5 grams over eight metres in Hole 2 (area A) and 1.15 grams over six feet in Hole 4 (area B).
Reunion recently optioned its base metal properties in Zimbabwe to privately owned Argonaut Mining.
Argonaut can earn a 50% interest in the properties, which include the Auriga and KD8 projects, by spending $3.4 million on exploration over three years. Recent geochemical and geophysical surveys on Auriga by Reunion revealed anomalies over a strike length of three kilometres. Shallow drilling intersected stringer chalcopyrite and weak sphalerite mineralization. The best intersection was 3% copper, 2.2 grams gold per tonne and 346 grams silver over 2.2 metres. Reunion will operate the project.
Meanwhile, Caledonia has signed an agency agreement with IBK Capital of Toronto whereby IBK will try to place up to five million units of Caledonia in Europe, subject to regulatory approval. The price of one unit will be $1. Each unit will consist of one share and one warrant. Two warrants will entitle the holder to buy one share at $1.25 by June 16, 1995.
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