Canadian Gold raises $1 million for programs

Canadian Gold Resources reports it has raised $1 million for exploration programs on several Ontario properties.

According to President Gordon Leliever, $500,000 secured from Colray Resources will be used for an exploration program in Lebel Twp., Kirkland Lake mining division, on the Kirkroyal and Lakeside Kirkland mine. Colray can earn a 20% interest in the property.

Mr Leliever adds his company will also have an option on one million shares of Colray, for a period of two years, at 50 cents per share.

Busy in other Ontario areas, Canadian Gold has also negotiated a private placement for another $500,000 (in a 125,000 share offering at $4 a share). This will be used for a ground geophysical and exploration program on its properties in the Geraldton/Beardmore/Jellicoe area and on its joint venture properties with Monte Carlo Gold Mines.

And, he says, Canadian Gold has completed a diamond drill program covering the Dik-Dik mine near Jellico, Ont. Some 7,000 ft of drilling was completed, The seven holes in the program returned sections varying from 3.6 ft yielding 0.25 oz gold per ton, to a 3.5-ft section at 0.397 oz and another of 5 ft at 0.359 oz.