Reserve increase at Shoal Lake property

According to KPM, a recently completed 13,129-ft drill program by project operator Bond Gold Canada, has increased reserves to 1,401,801 tons grading 0.25 oz gold per ton, up from 1,046,900 tons grading 0.24 oz gold reported previously.

Bond Gold has earned a 50% interest in the Shoal Lake property from KPM, which holds the remaining 50% interest. Kenora Prospectors was once in the Thayer Lindsley fold, and although the company is listed on COATS, the issue has not traded in years.

Sue Dobson Green, a Toronto businesswoman and president of KPM, holds 62% of the company’s issued common shares.

She says an underground program is likely to be the next step at Shoal Lake. However, a final decision and cost estimate have yet to be made. KPM will have to match Bond’s expenditures dollar for dollar in any future underground program. “We’ll probably have to raise funds,” she said. “We might look at a private placement or any other avenue that is available to us.”

Ten of the 14 holes in the recent drill program tested the Main vein of the Cedar Island shear zone. The best intercepts were 7.76 oz gold over a true width of 6.43 ft in hole 132, and 0.49 oz gold over 16.99 ft in hole 140.

The Main vein remains the highest priority exploration target and contains 749,360 tons grading 0.26 oz gold over and average true width of 8.39 ft. The zone remains open along strike and at depth.

Four of the recent drill holes tested the vicinity of the old Mikado mine workings. The Mikado vein was intersected in all four holes with two intersecting visible gold.

Initial metallurgical studies have indicated that good gold recoveries may be expected by using conventional milling techniques.

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