Camreco attempts to expand Goldlund bet gold reserves

Toronto-based Camreco Inc. finds itself in an enviable position at its northwestern Ontario gold claims located between Dryden and Sioux Lookout.

With a brand new 400-ton-per- day mill and a 3-compartment 825-ft shaft on site, Camreco can easily shift to a production mode if the company finds the necessary reserves.

To achieve its goal, Camreco is conducting a 40,000-ft drill program at the 83-claim property where subsidiary Goldlund Mines spent $20 million before running into financial difficulties.

Camreco added the property to its adjacent gold claims when it acquired Goldlund in late 1986. During a brief period between 1983 and 1985, Goldlund produced around 15,000 oz from a combined open pit and underground operation.

Designed to expand the zones of known gold mineralization, the program includs vlf, magnetometer and ip surveys. According to Camreco President Matthew Gaasenbeek, reconnaissance drilling has delineated several granodiorite horizons along 4.6 miles.

“The main horizon has been traced over at least 2.5 miles with varying amounts of quartz veining silicification and scattered low gold values,” he said.

Reserves at the property already stand at around 200,000 tons grading 0.18 oz gold per ton. Gaasenbeek says the No 3 zone located 1,200 ft north of the former Goldlund shaft, not only confirmed zones intersected by previous drilling, it also indicated that these zones are multiple and open to depth.

Additional mineralization of economic interest was encountered in the No 5 zone, 600 ft southeast of the open pit, says Gaasenbeek. It has received little attention so far.

In addition, Camreco encountered what Gaasenbeek called “significant gold values” in a drill hole in the No 2 zone, 3,500 ft northeast of the Goldlund shaft. Results released so far are as follows:

Length

of Inter Gold Value Zone Drill Hole section Oz/Ton No 2 CA87-18 1.5 ft 1.22

1.5 ft .22 No 3 CA88-10 1.0 ft 30.70

14.7 ft 0.27

CA88-12 45.8 ft 0.05

CA88-13 2.4 ft 2.16 Areas No 2 & 3 CA87- 7 6.4 ft 0.24

13 ft 0.037

4.5 ft 0.16

CA87- 9 2.4 ft 0.10

Camreco says three deep holes, drilled underneath the old Goldlund mine workings returned granodiorite intersections, with lengths from 17 ft to over 180 ft below the 1,100-ft level.

To finish the program, the company must complete an additional 8,000 ft of drilling by Feb 29.