New exploration program started by Chesbar Res.

A new $2.77 million exploration program has started at Chesbar Resources’s gold project in Chester Twp., near Gogama, in northern Ontario.

The program calls for extension of the ramp by 1,300 ft to permit access to a second level at 400 ft vertical depth. Previously the ramp was driven 1,640 ft to access the first level at 200 ft vertical.

The Chester Twp. property is owned by Murgold Resources. Chesbar is earning a 60% interest in the property.

A total of 2,700 ft of lateral development plus 500 ft of raising is included in the new exploration program, as well as 25,000 ft of surface and 18,000 ft of underground diamond drilling.

On the No 3 vein, sampling from initial underground lateral exploration averaged 0.528 oz gold per ton over 5 ft and along 320 ft, President J. T. Flanagan reports. The zone’s known length of 2,800 ft will be tested, as will several other gold- bearing structures on the property.

Chesbar is hoping to be in a position this summer to make a decision on production at the site.

Meanwhile, a contract for a minimum of 5,000 ft of diamond drilling is being let by Chesbar for its Mikwam River project, involving 134 claims in Newman and Tomlinson Twps. on the Ontario side of the Casa Berardi belt.

The drilling is designed to follow up results from 7,419 ft of re-circulation overburden drilling to bedrock in 72 holes, in conjunction with the 160 miles of magnetometer and electromagnetic surveying.

Mr Flanagan reports that geophysics succeeded in identifying a favorable horizon for nine miles along the property while the re-circulation drilling obtained microscopically identified showings of free gold in 17 holes, both in individual grains and as clusters of up to 32 grains.

Chesbar may earn a 60% interest in the project through the expenditure of $2 million over three years. The claims are located on property owned jointly by Grandad Resources and privately-held Seal River Exploration.