American Reserve hits at Paymaster

Deep drilling completed on the Paymaster mine property in Timmins, Ont., has intersected strong gold values 175 ft below the workings of the shutdown mine, partners Associated Porcupine Mines (TSE) and American Reserve Mining (ME) report.

Drilling to 6,175 ft yielded three intersections of 9 ft grading 0.22 oz gold per ton, 19 ft assaying 0.31 oz and an 18-ft section grading 0.38 oz. The core lengths approximate true widths, the companies say.

A wedged hole will be drilled from a point 1,300 ft above the bottom of the original hole. This wedged hole will cut across the zone. The partners are also preparing to dewater the mine workings and begin an underground exploration program.

The program’s focus will be on proving up a reserve of 794,000 tons grading 0.223 oz which is believed to remain in the mine. American Reserve is financing the $15.2- million program in order to earn a 50% interest in the project.