Monument Bay yields gold

Drilling by partners Bema Gold (BGO-T) and Wolfden Resources (WLF-T) has intersected two gold-mineralized shoots near the Twin Lakes West zone on the Monument Bay property, 650 km northeast of Winnipeg, Man.

Drilling on the Seeber 136E zone was highlighted by a 3-metre section (beginning at a down-hole depth of 73 metres) of hole 161 grading 37.8 grams gold per tonne. Other results include the following:

— Hole 163 — 2.8 metres (from 106.3 metres) grading 4.4 grams gold;

— Hole 170 — 7 metres (from 131 metres) of 1.2 grams gold;

— Hole 172 — 2 metres (from 235 metres) averaging 2.7 grams gold.

Most of the intersections represent the B horizon, one of three that are known to exist at Monument Bay.

The best result from drilling on the Seeber 139E zone was 4.3 metres (from 171 metres) grading 9.6 grams gold, including 2.3 metres (from 107.2 metres) of 14.9 grams, in hole 171.

Hole 152 encountered two intervals, the best being 3.4 grams gold over 4 metres beginning at 16.4 metres down-hole.

Hole 157 cut 1.4 metres (from 82 metres) grading 6.12 grams gold, and hole 165 surrendered 1 metre (from 74.3 metres) of 7.75 grams gold. Most of the intersections represent the C horizon.

Meanwhile, six of nine holes collared east of the main Twin Lakes zone cut a new vein of mineralization. The highlight, 10.3 grams gold, came in a 0.3-metre section of hole 154. Grades in the remaining intersections run from 1.5 to 4.8 grams gold over widths of 1-11.5 metres and at depths of between 100 and 290 metres.

The partners say the structure hosting the Twin Lakes gold zones and the newly discovered mineralization extends for more than 25 km across the property; much of the strike length has seen only limited exploration.

In all, the drill program, which ran from August to November, consisted of 30 holes totalling 7,690 metres.

At last count, inferred resources at Monument Bay were pegged at 639,377 tonnes averaging 20.4 grams per tonne, equivalent to 418,371 contained ounces gold. The estimate employs a cutoff grade of 8 grams gold per tonne and a minimum true width of 1 metre.

Gold mineralization at Monument Bay is associated with quartz veining and strong sericite and silica alteration within intermediate volcanic flows and felsic dykes.

The partners have begun planning a plus-15,000-metre drill campaign designed to test the B and C zones at depth under Twin Lakes following winter freeze-up.

Bema recently earned a 70% interest in the property, leaving Wolfden with a 30% stake; future exploration will be funded accordingly.

Shares in Bema were 29, or nearly 7%, higher at $4.66 in late afternoon trading in Toronto following the news on Dec. 11. For their part, Wolfden shares were up 17 at $6.32.

In other news, Wolfden has agreed to buy Kinross Gold‘s (K-T) advanced Ulu gold property in Nunavut for US$2 million. Wolfden must also issue 2 million units, each of which comprises one share plus half a warrant. A full warrant is good for one share at $5.80 apiece for 18 months. Wolfden will also pick up some mining equipment from Kinross for $1.1 million.

The Ulu deposit is hosted by the High Lake greenstone belt and is 55 km south of Wolfden’s High Lake property. Resources at Ulu are pegged at 1.4 million tonnes running 12.9 grams gold, based on a cutoff grade of 5 grams gold and a 1.5-metre minimum mining width. The resource stretches from surface to a depth of 360 metres, below which the deposit remains open.

Results from limited drilling below the 360-metre level run as high as 7.3 grams over 12.7 metres at a depth of 520 metres, and 14.9 grams over 7.7 metres at 610 metres.

Preliminary metallurgical work on composite drill core samples indicate gold recoveries of around 90% via cyanide leach.

Excluded for the resource are several mineralized zones and vein extensions. Included are:

— the GNU prospect (with drill intercepts up to 10.1 grams over 1.8 metres and 14.4 grams over 3.2 metres);

— the Zebra prospect (12.3 grams over 1.6 metres); and

— the Ravine target, where limited prospecting returned up to 36.2 grams gold and 26 grams gold from the trace of a dip-slip fault.

Rubbly gossanous quartz veins have been defined immediately north and south of the ravine, with samples running between 22.8 and 89.1 grams gold. The area remains undrilled.

The Ulu property includes a ramp completed to the 155-metre level on the Flood zone, an escapeway/fresh air raise. Also included are a runway, camp, power generation and fuel farm.

BHP Billiton (BHP-N) retains the diamond rights to the property and has a 5% net smelter royalty on gold production exceeding 675,000 oz.

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