Dianor cuts gold in James Bay region

Montreal-based Dianor Resources (DOR-M) has intersected gold mineralization during initial drilling at its 1404 project, 45 km southeast of Radisson in Quebec’s James Bay region.

So far, the junior has reported results from three holes of a 7-hole, 500-metre campaign, with the following highlights:

3.1 metres (from 13.7 metres) grading 1.03 grams gold per tonne in hole 1;

68.3 metres (from 10.3 metres) of 0.89 gram gold in hole 2; and

36.9 metres (from 41.7 metres) of 1.31 grams gold in hole 3, which was drilled into a stockwork zone hosted by felsic intrusive rock.

These three holes were drilled under the Will, Gordie and Pierre showings, respectively.

Results for the remaining four holes are pending, and Dianor plans to resume drilling shortly.

The program is being funded by two flow-through financings that closed on Dec. 31, 1999.

The first deal raised $200,000 through the private placement of 1 million shares priced at 20 per share.

The second deal raised $333,000 through a prospectus priced at 28.5 per share, with Dianor issuing 1.2 million shares to unit A subscribers as well as 10,500 shares and 10,500 warrants to unit B subscribers. Each warrant entitles the holder to buy a common share for 38 within one year.

Also, because Dianor’s shares have stayed above 35 for more than five business days, holders of Dianor’s 2 million previously issued warrants may now buy a Dianor common share for 35.