Varna busy in Maritimes as Corona starts program

Calgary-based Varna Gold (ASE) says a 3,000-ft. drill program got under way recently at the company’s Ming’s Bight joint venture in Newfoundland.

As part of a plan to earn a 70% stake in the project, Corona (TSE) is operating a program to test the continuity, on strike and downdip extensions of the Lightning and Thunder zones.

The shallowly dipping Lightning zone hosts three mineralized zones in a sequence of massive and tuffaceous volcanic rocks. Last year, drilling outlined mineralization over a strike length of 500 ft.

Highlights to a depth of about 300 ft. below surface include 45.9 ft. of grade 0.17 oz. gold per ton and 13.1 ft. of grade 0.49 oz. gold.

Trenching on the Thunder zone, about 300 ft. south of Lightning, has yielded gold values of up to 0.3 oz. gold over 118 ft. (including 32.8 ft. of grade 0.55 oz.). However, limited diamond drilling has indicated only narrow intersections at depth.

Also, exploration is expected to begin later this month at the Varna, Newfoundland Goldbar Resources joint venture in central Newfoundland.

Goldbar recently agreed to earn a 50.1% stake from Varna in the Glover Island gold claims where samples have assayed as high as 0.55 oz. gold. Goldbar is a private Maritime company.

When exploration begins, Goldbar will act as operator of a $2- million exploration program in which $500,000 is to be spent in each year of a 4-year agreement. The property comprises 13,000 acres.

Contrary to what was reported (T.N.M., Dec. 18/89), Goldbar must pay Varna $100,000 upon signing and make additional annual payments of $100,000 over four years starting Nov. 30, 1990.

Also, Varna has agreed to take up to 100,000 shares of the Newfoundland company and retain an option to purchase an additional 300,000 shares during years one and two at 50 cents each and a further 300,000 during the third and fourth year for 75 cents per share.

Through a private placement of 1.25 million Varna shares undertaken by Newfoundland Goldbar at 20 cents each, Varna is also strengthening its own working capital position.