Rea Gold (TSE) is busy drilling at its Mt. Hamilton mine in eastern Nevada, and results are proving positive.
The reverse-circulation program is testing the new Chester gold structure. Forty holes, totaling 7,640 ft., were drilled in an effort to define two separate zones of mineralization.
The Northern zone has been traced over at least 400 ft. and is open to the north and east. Mineralization is within 50 ft. of the surface. The gold grade averages 0.04 oz. per ton over an average thickness of 24 ft.
The Southern zone has been defined over 1,000 ft. It averages 15 ft. in thickness, with a gold grade of 0.03 oz. per ton.
Drill results are as shown below.
Rea has also carried out soil and outcrop sampling, as well as geologic mapping in the hope of finding a major gold deposit similar to the existing Mt. Hamilton operation.
Follow-up drilling is planned.
In other company news, Rea has signed a deal with several Canadian underwriters to issue a private placement of 8.3 million special warrants at a price of $3 each. This will net the gold producer $25 million to finance ongoing development at the Bissett gold mine.
HoleIntervalThicknessGold
(ft.)(ft.)(oz./t)
19580-95150.128
19750-85350.051
20150-65150.045
204220-235150.085
23720-55350.026
155-165100.058
24120-40200.038
24245-70250.030
90-9550.106
25055-75200.021
255-265100.035
251135-185500.079
25280-90100.031
120-150300.055
255100-125250.021
245-25050.092
257145-180350.020
259115-135200.053
26150-75250.040
090-105150.033
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