Ateba uncovers new showing south of Orion at Beardmore

Further encouragement that Ateba Mines has made a significant new gold discovery in McComber Twp. east of Beardmore, Ont., has been reported by General Manager Stephen Wilkinson.

Samples have been taken from outcrops stripped last month. They returned assays of 0.49 oz gold per ton over a width of one metre and a strike length of 39 m on a new showing, dubbed the Dominion. It is located 300 m south of the previously-reported Orion showing (N.M. Dec. 7/87)

Another series of samples, taken over a strike length of 14 m, located along the same trend, but further west, returned assays of 0.36 oz gold per ton over widths of one metre.

The showing has been stripped for about 750 m but the veins remain open along strike.

Diamond drilling will commence on the showing in the near future, Wilkinson says.

His company, which is debt-free, is now a small gold producer. A total of 265 oz of the yellow metal was poured in December at the Pan- Empire mill, located 10 km west of the Orion/Dominion showings. Modifications have been made to the milling equipment there to allow full production throughout the winter months. Gold production is expected to be about 300 oz this month, escalating to 1,000 oz per month by June.

The company has broken reserves on surface of about 400,000 tons grading 0.06 oz gold per ton — all of which is “waste” rock from old producing mines in the area.

One of those old producers, the Magnet mine, near Geraldton is being dewatered by Ateba and tse- listed Roxmark Mines. By the end of February, water levels in the mine should be down to the 11th level. Crews will then be able to install a new hoist on the internal shaft which provides access to the bottom, 17th level. Pumps will be installed in this shaft to dewater the mine entirely.

The two companies believe there is major ore-making potential in the quarter-ounce-per-ton range on the 17th level. That is where Consolidated Magnet Mines stopped work in 1951.

Ateba shares traded this week in Toronto at about 78 cents and Roxmark shares traded at 28 cents .