Coxheath Gold bulk testing underway

Coxheath Gold Holdings Ltd (TSE) says that a bulk testing program presently under way on its Tangier property is expected to be complete by November 1988.

At the completion of the bulk testing program the company plans to commence mining at an initial rate of 250 tons per day. The property is located 100 km northeast of Halifax, N.S., and is owned 100% by Coxheath.

Work done on the property during 1988 included 5,000 ft of drifting, raising, crosscuts, and decline, and 6,000 ft of underground drilling. A total of 4,000 chip and muck samples were taken, and a 6,700 ton bulk sample was milled.

Three vein systems were chip sampled underground with the following results: Uncut Vein Length Width Grade

(ft) (ft) Oz/ton Twin 115 4 0.84 Whin 138 4 0.59 Marker 161 4 1.21

Reserves (to 600 ft depth) are estimated at 234,672 tons proven, 315,300 tons probable, and 1,350,000 tons possible. The calculated average grade of the proven and probable reserves is 0.301 oz gold per ton. The ore is hosted in three parallel vein structures, and the gold is reported to be coarse and free milling. The ore zones are narrow (40 to 100 cm in width) which could result in problems with dilution, but this will probably by handled by using resuing as the mining method, the company says.

Coxheath has 19 other properties in Nova Scotia in various stages of exploration on which the company has expended $4.5 million. Most of these are gold properties in the Meguma Belt. They will be explored in sequence following commencement of operations at the Tangier property.