Geologist Bernard Gallant, president of Calgary-based Pan East Resources expects to see his company’s exploration project at Fifteen Mile Stream in Halifax Cty., N.S., go to an underground program in the next five months. Drilling by joint venture partner Greenstrike Gold Corp. on the 51-claim property has tripled preliminary reserves to about 600,000 tons averaging 0.24 oz gold per ton to a depth of just 350 ft. In return for funding a 17-hole program which ended in February, Greenstrike picked up 715,000 shares of Pan East.
Two drills are now operating on the property, testing the gold- bearing structure along strike and to a depth of 500 ft. Under the terms of a new agreement, worked out in April (N.M., May 18/87), Greenstrike can earn an additional 666,662 Pan East shares by spending $1.5 million by February, 1989.
Some intersections have been 20-25 ft thick. The gold occurs within interbedded quartz veins and graphitic sulphide-rich slates.
Some of the better results so far include:
Intersection Grade Hole (ft) (oz gold/ton) 86-5 18.1 0.433
10.3 0.172 86-6 15.9 0.585 86-8 17.3 0.160
13.4 0.158 86-9 21.2 0.172 86-11 12.4 0.123 86-12 5.4 0.673 86-15 4.5 0.509 86-16 15.9 0.202 86-17 24.8 0.132
A total of 20,328 oz of the yellow metal was recovered from the property during sporadic production between 1880 and 1941. Some 49,896 tons of ore were processed.
Pan East also has two grassroots projects: one at Mount Uniacke and one at Killag, both in Nova Scotia.
The company has 3,605,239 shares outstanding, trading this week on the Alberta exchange at about $3.35.
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