At Harker-Holloway New zone at Harker-Holloway

A new gold-bearing structure has been identified on the Harker- Holloway gold property, 40 miles east of Matheson, Ont. Noranda (TSE) discovered the new structure while infill drilling on the main Lightning zone. Lying about 65-130 ft. stratigraphically above the main zone, the structure contains several wide intersections (up to 124 ft.) grading up to 0.42 oz. gold per ton (cut). Noranda holds a 60% interest in the project while Freewest retains 40%.

“The whole scene looks pretty good,” Freewest President Mackenzie Watson told The Northern Miner. But Watson was reluctant to say more about the new zone until Noranda clarifies the outline with further drilling.

Further down, in the Lightning zone itself, Noranda intersected some of the best gold grades yet. One 17-ft. section returned a grade of 0.57 oz. Widths were also impressive — up to 100 ft. grading 0.25. Recent metallurgical bench tests on the core from the Lightning zone indicate gold recoveries in excess of 90%, said Freewest.

“The Harker-Holloway project is Noranda’s most promising gold play in Eastern Canada,” said Robert Bishop, editor of the newsletter Gold Mining Stock Report. “With the high average grade, the deposit appears capable of supporting a positive production decision,” he said.

The project, geologically situated on the Porcupine-Destor fault zone, lies one mile north of the producing Holt-McDermott mine. The Lightning zone extends downdip from the Noranda-Freewest property to the Teddy Bear Valley Mines (COATS) property to the west, where high grades have also been intersected. At the moment Noranda has a 51% stake in the adjacent property, while Teddy Bear holds 30%, Freewest 34%, and Newmont Gold (NYSE) 15%.

Based on surface exploration conducted by Noranda (not including the new hangingwall zone), a preliminary reserve estimate totals three million tons averaging 0.25 oz. Mineralization is associated with a contact between mafic and ultramafic rocks. Dipping steeply to the south, the Lightning zone is reported to contain pyrite in amounts of 5-30%.

Four drills are currently operating on the property — three on the infill and one on stepout drilling. Noranda expects the 100,000-ft. program to take up to seven months to complete. At that time, the partners will decide whether to begin underground exploration.

Results from the Lightning zone, at vertical depths of 1000-2100 ft., include: Assays exceeding 1 oz. per ton were cut to 1 oz. per ton. Core Hole Length Grade No. (ft) cut 57 5.2 0.10 58 4.6 0.09 60 20.0 0.09 61 39.0 0.18 62 22.0 0.10 63 17.1 0.57 64 9.5 0.10 65 29.9 0.15 66 59.0 0.36 67 19.7 0.20 68 14.7 0.11 69 100.7 0.25 70 5.6 0.15 72 90.9 0.17 28.9 0.25 74 27.2 0.04

Results from the hangingwall zone, at depths ranging from 850- 1250 ft. include: Core Hole Length Grade No. (ft) cut 62 84.0 0.15 65 72.5 0.29 19.7 0.29 36.1 0.42 70 70.2 0.12 24.6 0.15 25.6 0.16 73 124.6 0.24 12.1 0.41 86.9 0.29 74 12.8 0.36