Canadian Giant plans Newfoundland drilling

The company, together with joint venture partner Noranda Exploration, plans to test three properties surrounding Bitech Corp.’s (ASE) Nugget Pond gold deposit on the Baie Verte Peninsula.

Canadian Giant acquired an interest in the properties last year by taking over Eastern Minerals Ltd., a private Newfoundland company controlled by two Cornerbrook businessmen.

The joint venture properties include the 9-claim West Pond group situated immediately northeast of the Nugget Pond deposit, and a 79-claim property known as Bett’s Big Pond group adjoining Bitech’s Nugget Pond to the southeast. A small 6-claim property near the old Betts Cove mine is also included in the joint venture.

Canadian Giant, through Eastern Minerals, already has earned a 20% interest in the properties and can earn a further 30% by spending $600,000.

A company spokesman said drilling is scheduled to begin this July, once geological surveys are complete. He said all financing will be in place by the end of this month, including $525,000 in flow-through funding.

Last year, Noranda is reported to have encountered anomalous gold values on the properties. The values obtained were as high as 64,000 parts per billion gold, the spokesman said. A current geological model for the region suggests that gold mineralization is hosted by a sulphide-bearing sedimentary horizon traceable for several kilometres.

At the annual meeting last month, James Wade, also president of Bitech, was appointed to Canadian Giant’s board of directors. Canadian Giant currently has about 3.2 million shares outstanding.

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