Cameco drilling finds new zone at Contact Lake

Cameco (TSE) has discovered a new gold zone on the Contact Lake (Preview Lake) property north of La Ronge, Sask.

Drilling along the Bakos structure, where three zones have already been identified, Cameco hit 82 ft. grading 0.16 oz. gold per ton at a depth of 853 ft. below surface.

The mineralization was discovered in a previously untested area between zones BK1 and BK3.

An unusually wide intersection, 46 ft. at 0.28 oz., was also taken from the BK3 zone under Contact Lake.

Cameco owns a 50% stake in the project. The remaining interests are held by Uranerz Exploration and Mining with 30%, and Westward Explorations (VSE) with 20%.

After completing the latest 12 holes, Cameco moved both rigs off the ice and onto land targets. One rig is testing extensions of the new zone in the vicinity of hole 308. The second is investigating other gold targets on the property.

To date, the Bakos structure has been identified over a strike length of 1.4 miles. Mineable reserves within zones BK1 and BK2 are estimated to be 1.2 million tons grading 0.23 oz. gold. An additional preliminary reserve of 400,000 tons at 0.35 oz. is contained within Contact-Pap, a second deposit nearby.

Cameco will review the feasibility of the project in light of current gold prices when it wraps up the 42,600 ft. program later this spring. A study completed in July, 1990 proposed a 750-ton-per-day operation with a capital cost of $40 million.

Last year, Cameco received approvals to proceed with development within the Lac La Ronge Provincial Park, where the Contact Lake deposit is situated.