Baloil reports good results from old Kootenay producer

Baloil is spending $175,000 to earn a 60% interest on the 60-acre property where gold intersections are associated with an old polymetallic mine. The remaining interest is held by an Alberta numbered company.

After rehabilitating some old adits and completing 24,003 ft of diamond drilling, President Albert Balasch said his company has traced a fractured limestone structure for 1,500 ft on surface and to a depth of 300 ft.

“The structure is still open in all directions,” said Balasch who says that the property may have open pit potential.

According to Baloil, the structure has yielded gold values as high as 0.508 oz gold per ton and highlights from recent drilling are listed below: Drill Width Oz hole ft. Gold/ton DDH — 1 8.8 13 DDH — 2 5.5 0.17 DDH — 4 6.0 0.10 DDH — 9 5.5 0.05 DDH — 10 6.0 0.10 Trench 1 30.0 0.04 Trench R 13.1 0.01 Trench L3 9.8 0.21 Adit 2A 2.8 0.75

Baloil says it recently discovered unmapped workings on the Sumit property where visible gold has been identified in a narrow quartz vein. Grab samples returned values of 1.54 oz gold, 7.8 oz silver, 15.6% lead and 0.42% zinc, the company said.

Disseminated sulphides also occur in a limestone wallrock where assays of the material include 0.148 oz gold and 12.1 oz silver.

Baloil is planning a flow-through share issue to finance continued exploration at Sumit and at its Salmo claims near Rossland, B.C.

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