Chapleau Res. drills for base metals in N.B.

Northern New Brunswick is the focus of base metal exploration by several junior companies, including Chapleau Resources (VSE), which is carrying out drilling and geophysical work on the Shingle Gulch property.

Chapleau is earning a half interest from PGE Resource (ASE), which holds 90%, by spending $1.5 million over four years. A private company holds the remaining 10%.

With a drilling program budgeted at $400,000, Chapleau is testing several geophysical anomalies coinciding with lead-zinc soil anomalies.

Hole 96-6, which returned a reported 50-ft. interval of volcanic breccia, containing 15-20% sulphides, assayed 8 ft. grading 0.51% lead and 1.29% zinc.

Hole 96-10 intersected five distinct bands of sulphides. Results include 12 ft. at a depth of 411 ft. grading 0.63% lead and 1.33% zinc, plus 14.8 ft. at a depth of 479 ft. grading 0.73% lead and 1.37% zinc, as well as 0.13 oz. silver per ton. Assay results for the bottom 216 ft. of the hole are pending, as are results from holes 96-5, 11 and 12.

Chapleau has 22 million shares outstanding and working capital of $2 million. A private placement of 1 million units priced at $1.55 per unit is in the works. Each unit will consist of one share and one non-transferable share purchase warrant, entitling the purchase of an additional share at $1.60 in the first year and at $1.80 in the second.