High gold values found at McAdam Res. project

Toronto-based McAdam Resources has encountered some high gold values at the Spud Valley joint venture project on Vancouver Island, B.C., the company said recently.

McAdam holds a 75% interest while partner Tashota-Nipigon Mines retains the remaining 25%.

Exploration drifting is continuing on the Linton North vein 500 ft north and east of the former mine. “The last 57 ft of drift averages 0.783 oz gold per ton across a 4-ft mining width and the vein structure in the drift face is still strong,” says President John McAdam.

Values encountered during the last 183 ft of drifting include 57 ft grading 0.783 oz, 25 ft of 0.041 oz and 56 ft averaging 0.216 oz. The average grade for the entire 138 ft added up to 0.418 oz, he says.

Since a surface hole located 100 ft further east and 85 ft above the drift, intersected 0.55 oz over 4 ft, McAdam is anticipating similar values on the Linton North vein.

Other surface diamond drill holes which intersected the Linton North vein include Hole 86-G-18 which assayed at 3.69 oz over 4.2 ft and Hole 86-G-9 which averaged 0.93 oz over 4 ft.

Reserves in all categories at the Spud Valley project stand at around 247,000 tons grading 0.41 oz.

McAdam also holds a 50% interest in the McWatters project near Noranda, Que., where Tashota- Nipigon and Quinteko Resources each retain a 25% interest.

Reserves at McWatters stand at 910,000 tons grading 0.19 oz gold including a 15% dilution factor.