An independent consultants report recommends that Rainbow spend $750,000 on the 36-claim property which yielded 60,000 tons of ore grading 0.18 oz per ton between 1934 and 1937. Having acquired the property recently, Rainbow is attempting to raise the funds needed to carry out the exploration program in three phases.
The Calgary company has been encouraged by sampling results from the old mine after seven underground levels were dewatered in 1986. Results of the sampling program included 0.485 oz in an exploration drift on the 525 level. Known as the J zone, the structure wasn’t mined by the previous operator, says Rainbow President Edward Stringer.
A hole drilled in 1937 from the 875 level to a depth of 1,000 ft intersected a number of veins measuring 6-50 ft. Gold values in the veins were 0.10-0.20 oz.
A 40-ft intersection averaging 0.74 oz was reported in another hole drilled to a depth of about 1,000 ft, according to Stringer.
He predicts that the first two exploration phases will consist of surface drilling. Underground drilling may follow depending on results of phases one and two.
The MacMillan acquisition gives Rainbow rights to 10 sq mi in Mongowin and McKinnon twps., plus a number of gold showings which are all on strike and in the same east-west trending horizon of Gowganda formation sediments.
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