Drilling will continue in early 1988 following a successful preliminary program on Esperanza Explorations’ Strebe prospect, adjacent to its Tillicum gold project near Burton in northeastern B.C.
Preliminary drilling has succeeded in defining continuity of surface gold mineralization that remains open along the strike and depth, the company reports.
Eight holes were drilled to test extensions to depth of surface mineralization assaying 0.45 oz gold per ton over 39 ft. All of the holes intersected the host carbonate-silica gold-bearing zone and five holes had visible gold within the zone.
Among the results: hole 87-3 intersected 30 ft grading 0.33 oz including 7 ft of 1.16 oz. Hole 87-2 intersected 18.5 ft grading 0.18 oz, including 6.8 ft of 0.43 oz. Hole 87-5 gave 17 ft grading 0.1 oz, including ll.5 ft of 0.14 oz.
Subject to regulatory and shareholder approval, Welcome North will subscribe for 2.5 million units of Esperanza at a price of $1 per unit. Each unit will consist of one common share and one warrant exercisable for one year, which entitles Welcome North to purchase one additional share at a price of $1.25.
Funds from the unit offering will be used for production financing of the Tillicum project, exploration of the East Ridge zone and continued drilling of the Strebe prospect.
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