Meadowbank gold deposit expected to increase

Based on initial results from ongoing diamond drilling, Cumberland Resources (CBD-T) and Comaplex Minerals (CMF-T) are anticipating an increase in resources at their jointly held Meadowbank gold property in Nunavut, N.W.T.

Cumberland has a 60% interest in the property, situated 70 km north of Baker Lake, while Comaplex owns the remainder.

The joint venture is carrying out a 22-hole program in an effort to test the Goose Island, Third Portage South and West Iron Formation zones.

Drilling last year outlined 976,834 tonnes grading 11.46 grams gold per tonne, to a depth of 225 metres below surface at Goose Island, as well as 3.4 million tonnes grading 6.53 grams gold (potentially minable by open-pit methods) in Third Portage South zone. Drilling at the third zone is still at the reconnaissance stage.

At Goose Island, five holes tested for mineralization below existing resources. Two of the holes intersected three separate zones of gold-bearing mineralization. One hole hit anomalous gold values, while the remainder returned negligible results.

Results from holes in which multiple zones were intersected include: hole 163, which hit 1 metre (from 395.6 to 396.6 metres) grading 23.6 grams gold, 3.2 metres (from 467 to 470.2 metres) of 15.44 grams gold, and 1 metre (from 493.2 to 494.2 metres) of 9 grams gold; and hole 165, which intersected 1 metre (from 260.2 to 261.2 metres) grading 7.64 grams gold, 2 metres (from 294 to 296 metres) of 18.9 grams gold, and 3 metres (from 405.3 to 408.3 metres) of 16.25 grams gold.

The results were calculated using a cutoff grade of 5 grams gold over 1 metre.

The holes were widely spaced, with hole 163 intersecting mineralization at a vertical depth greater than 400 metres. Because of the depth in which mineralization was intersected and the spacing of the holes, the companies are optimistic about uncovering additional resources at Goose Island.

The three holes drilled at the Third Portage South zone were collared 120 metres west of previously identified mineralization. Of these holes, two returned significant results, while values from the final hole are said to be insignificant.

Hole 97-167 returned 7.2 grams gold over 7 metres, starting at a core length of 128 metres. Starting at a core length of 119.21 metres, hole 168 intersected 3 metres of 12.13 grams gold.

The intersections occurred roughly 100 vertical metres below surface, and they indicate a southwestern extension to the zone.

Soon, a second phase of drilling will begin testing the North Portage zone, where preliminary results outlined a resource of 259,185 tonnes grading 9.31 grams gold.

A total of $2.8 million has been allocated for both phases, each of which will consist of 5,500 metres. The company hopes to outline an additional 400,000 oz. gold and then carry out a positive prefeasibility study.

In other news, Cumberland is seeking regulatory approval for an extension, to Nov. 30, of the closing date for its A and B series of special warrants, issued in May 1996. The closing date set at the time of issuance was June 30, 1997.