Dolphin planning $4-million program for Cape Ray bet

Dolphin has spent about $10 million on the property since acquiring it in 1985, President Robert McCallum told shareholders at the annual meeting in Toronto.

The Cape Ray property in southwest Newfoundland hosts diluted potentially mineable reserves of 362,000 tons averaging 0.315 oz gold per ton, with additional reserves of 106,000 tons grading 0.252 oz. A feasibility study for the project is to be completed this year.

Dolphin recently struck a deal with Ardonex Resources to sell to the private Newfoundland-based firm a 25% interest in the property for $5.6 million.

Four zones have been identified to date at Cape Ray. Three of the zones (04, 41 and 51) have been traced over a strike length of 6,000 ft and in places to a vertical depth of 870 ft.

McCallum said a crew is on site preparing to begin mining about 12,000 tons ore from a test stope in the 41 zone C vein. The work will allow for evaluation of the continuity of the ore, as well as assessment of the competency of the ground, which in turn, McCallum said, will determine the appropriate mining method.

Purchases of other land holdings in the same region of Newfoundland have increased Dolphin’s land holdings in the province to about 32,000 hectares.

Shareholders approved two private placements worth $1 million each, one with Corona Corp. (Dolphin’s major shareholder) involving about 1.7 million flow-through shares, and the other with CMP 1989 involving about 1.8 million flow-through shares.

The company has expanded its board of directors to eight members, including two representatives appointed by Ardonex. Elected were McCallum, John Donovan, Christopher Jennings, Peter Steen, Anthony Walsh, Igor Levental, Arch Brewer and Donald Croucher.

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