A recently completed exploration program on the Porcher Island gold property held by Cathedral Gold (TSE) appears to have prompted the company to look for a partner.
.TLast year’s program was designed to test the AT zone’s No. 4 vein, considered by the company to be the main gold-bearing vein. The vein was tested with a 360-ft. raise between the 1110 and 1015 level adits, as well as a 370-ft. mid-level drift.
Bulk sampling of 1,464 tons over a mining width of 4.9 ft. produced a weighted average grade of 0.17 oz. gold per ton. Chip sampling of 100 mining faces returned an average weighted grade of 0.33 oz. over an average width of 4.5 ft.
The company noted the results indicate that additional underground development and infill drilling will be required to outline ore blocks. Cathedral will attempt to finance the work through an option or joint venture agreement.
Geologic reserves on the AT zone were previously estimated at 1.5 million tons grading 0.20 oz. Porcher Island is 40 km southwest of Prince Rupert, B.C.
Cathedral recently reported a net loss of $1 million for the year ended Dec. 31, 1989. Production at the 52% owned Sterling mine in Nevada totalled 7,497 oz. at an average cash cost of US$232 per oz.
The company expects Sterling will produce 11,000 oz. of gold during 1990 and notes current reserves of 519,000 tons grading 0.21 oz. will last for six years at current production rates. Cathedral Gold (TSE) $000s except per-share item Year ended Dec. 31 1989 1988 Revenue $1,725 $2,405 Net earnings (loss) (1,016 ) 373 Net earnings
(per share) (0.16 ) 0.0804
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