Waddy enhances high-grade potential of Komis deposit

Additional drill results from the Komis gold deposit in northern Saskatchewan suggest that Waddy Lake Resources (TSE) has correctly interpreted the orientation of the mineralization. The company completed a total of 29 holes (13,450 ft.) on its wholly owned property to more clearly define the geometry and continuity of previously unrecognized high-grade zones.

Waddy encountered the gold- bearing zones, including 125 ft. grading 0.5 oz. (uncut) per ton, in 13 of the 15 final holes. Some of the more significant results from the final holes include: Width Grade Hole (ft.) (oz. per ton) 15 36 0.49 16 26 0.49 17 43 0.37 18 125 0.50 20 23 0.53 23 66 0.20 29 20 0.35

Waddy will re-assay the samples using the double metallics method in order to overcome potential inaccuracies related to a high nugget effect.

The recent drill program represents a new approach to an old deposit. In the early 1980s, Waddy explored the property with the intention of developing a bulk- tonnage, open pit operation. Under new management, the company is now evaluating the potential for a selective, underground operation.

“The mineralization is very discreet in the sense that when you’re in the zones you have good gold grades and when you’re not you have zip,” said Waddy President Larry Lahusen.

This discreet mineralization, extending to a vertical depth of about 400 ft., is expected to enhance the grade of reserves that currently stand at 1.61 million tons grading 0.15 oz. gold per ton. “We would need about 1.5 million tons at 0.25 oz. to make the reserves economic,” Lahusen said. He said Waddy expects to release a new reserve figure within 4-5 weeks.

Ultimately, the company hopes to share a central mill with Golden Rule Resources (TSE), which is currently exploring several deposits along the Byers mineral belt in northern saskatchewan. Golden Rule has a 22% stake in Waddy.