Canamax results encourage south of Kremzar project

Drilling by Canamax Resources on its large land holdings adjacent to the company’s developing Kremzar gold mine, is yielding strong results. The Kremzar mine and surrounding properties are located near Goudreau, Ont.

On the 100%-owned Lochalsh property, Canamax has indentified a wide regional-scale shear zone which strikes across the property. Drill core taken at 1-m intervals across the zone ranged in assay from 0.09 oz to 5.45 oz gold per ton. The shear hosts numerous gold- bearing quartz veins which were tested by the drilling.

This winter, Canamax plans to continue testing the shear, which is largely covered by a lake. All 17 of the holes drilled returned gold values from multiple sections within each hole. The majority of these averaged between 1-3 m in width. Assays from the 51 sections cut by the holes cluster around the 0.2 oz per ton grade.

On the adjoining Goudreau project lands, which are held 51% by Canamax and 49% by the Algoma Steel Corp., a follow-up $500,000 program is scheduled to start this month. This property protects the same regional shear zone immediately to the east of the Lochalsh project.

Of six holes completed, each cut mineralized sections of the zone with assays ranging from 0.08 oz in one 4-m section to 5.45 oz in a 1-m section. The majority of the intervals were relatively higher grading in nature. These include hole 61-22 which cut four 1-m zones grading 0.23 oz, 4.61 oz, 0.77 oz and 0.19 oz.

The Kremzar gold mine, located 1,000 m to the north, is scheduled to enter production at 500 tons per day in September, 1988.