Chesbar extends ramp at Chester Twp. play

With an application made for listing on the Toronto Stock Exchange, Chesbar Resources is making progress on both the financial and exploration fronts.

The company, which now trades on the Montreal Exchange at about the $1.55 level, is extending the underground ramp at its Chester Twp. property, southwest of Timmins, Ont., an additional 1,000 ft to a length of 2,660 ft, hence opening up a second level on the No 3 vein zone.

On the upper level, 180 ft below surface, the No 3 vein has been exposed for a length of 260 ft so far. Partial assay results which are available for a length of 200 ft, indicate an average grade of 1.08 oz gold per ton across an average vein width of 4.2 ft.

Many of the individual assays are over one oz per ton and these have not been cut, but a minimum mining width of 4 ft has been used in the calculations, explains President J. T. Flanagan.

These results are not unexpected, he says. The No 3 vein structure is known from previous surface work and shallow drillings as a narrow but very high grade vein. Its known length is 2,800 ft and this will be explored and tested as part of the on-going underground work.

Underground diamond drilling is also continuing to delineate the No 3 zone and several parallel veins above and below the ramp level. Most of these holes have intersected significant gold values, with the best recent intersection being in hole No 24 which assayed 0.471 oz gold per ton over 9.5 ft.

Hole 27 cut a 2-ft section assaying 1.45 oz and the last hole reported, No 28, returned 15.5 ft with an average grade of 0.235 oz, including a 4-ft section running 0.673 oz.

A program of surface diamond drilling is on the boards for the Chester Twp. project to test some of the seven other known gold- bearing zones as well as several geophysical anomalies, says Mr Flanagan.

The company is also planning further work on its Ghost River property in the Harker-Halloway area of Ontario. So far, nine holes have been completed for a total of 5,313 ft with results showing favorable geology with some encouraging gold values, he says.

On the Mikwam property on the Casa Berardi belt, 72 reverse- circulation holes have been drilled to bedrock along the favorable belt. Samples from all of these are out for assay.

In financial matters, the company has made arrangements for up to $5.3 million in exploration financing this year through the issue of flow-through shares, subject to regulatory approval.