Chesbar Murgold ramp to be completed by month end

An exploration ramp being put down by operator Chesbar Resources on Murgold Resources’ Chester Twp. property about 70 miles southwest of Timmins, Ont., has reached 1,082 ft and is expected to reach its target of 1,420 ft by the end of January.

A test of the vein systems to determine metallurgical and mining characteristics will be done when the ramp is completed and access to the vein is gained by a crosscut sometime in February.

The ramp cut several gold-bearing vein structures at shallow depths. Two of them, the No 3 and No 4 veins averaged 0.285 oz gold per ton over 6.5 ft and 1.02 oz over 9.5 ft respectively.

Numerous other lower grade intersections were encountered within the major mineralized structure which is at least 140 ft wide and more than 1,500 ft long.

Five holes drilled underground from the ramp have all intersected visible gold in vein structures. Assays from the first three holes gave the following values:

Length of

intersection Grade (oz) Hole # (ft) gold/ton) Vein # UG1 4.0 0.292 3 UG2 5.5 0.423 3 UG3 1.0 0.163 N.A.

and 1.5 0.229 4A

and 1.5 0.436 4

and 1.5 0.254 3 UG4 7.0 0.582 3 UG5 6.0 0.399 3A

Further assays are still awaited from hole No 5 and a further 17,000 ft of drilling is planned in the current underground program.

Chesbar has the right to earn a 60% interest in 60 of Murgold’s 294 claims in the area by spending $2 million on the claims by the end of 1989 as well as paying Murgold $200,000 in cash or shares of Chesbar.