Re-opening of Glodlund possible in Camreco study

Significant drill results reported by Camreco Inc. (TSE) at its northwestern Ontario gold claims have led to preliminary feasibility studies which will look at the possibility of re-opening of the gold mine of subsidiary Goldlund Mines(TSE), located on the property.

The study will also consider the possibility of open pit mining of the reserves directly to the east of the mine hoist, says Camreco President Matthew Gaasenbeek.

Camreco acquired Goldlund, in the area between Dryden and Sioux Lookout, in late 1986. The mine produced about 15,000 oz gold from a combined open pit and underground operation, in the years from 1983 to 1985.

The company reports that one hole from the latest drilling on the Goldlund ground, east from the hoist to the open pit, returned 107 ft, from 47 ft to 154 ft., at a grade of 0.250 oz gold per ton, and another hole an intersection of 12.l5 ft, from 101.5 ft to 114 ft., at a grade of 0.120 oz gold.

On the adjacent Camreco claims, hole 88-29 returned 44 ft., from 953.5 ft to 997.5 ft., at a grade of 0.224 oz, and an intercept of 13.5 ft., from 953.5 ft. to 967 ft., at a grade of 0.635 oz gold.

These are just partial results, Gaasenbeek says. Final assays should be completed by about mid-June.

Camreco is in the happy position of being able to easily shift to a production mode, if it find the necessary reserves, because of the brand new 400 ton-per-day mill and three-compartment shaft that are already on the Goldlund site.