Athabaska, Chevron increase Nicholas Lake reserve estimate

The property is about 60 miles north of Yellowknife, N.W.T., and is 40%-owned by joint venture partner Chevron Minerals.

According to a recently completed reserve calculation by Chamberlain Geological Associates of Vancouver, drill-indicated reserves at Nicholas Lake currently stand at 614,000 tons averaging 0.355 oz gold per ton. That figure is based on a 0.146 oz cut-off grade and a 3.3-ft minimum mining width. Athabaska President James Kermeen said the drill-indicated category, stated in the new reserve figure, corresponds to the probable category in a previously published reserve estimate of 525,000 tons grading 0.32 oz.

Gold occurs in a series of quartz veins which cut a granodiorite intrusive and metasedimentary rocks. The structures are reported to be open along strike and at depth.

The company said negotiations are under way to obtain financing for a proposed $5-million underground exploration program.

Drilling was suspended earlier this year on the property pending clarification of financing. Athabaska shares have traded at around 45 cents recently.

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