Chesbar, Murgold report drilling confirming continuity

Underground drifting and drilling programs at the Chester Twp., gold property being developed by Chesbar Resources (TSE) and Murgold Resources (TSE) in northern Ontario continue to confirm the continuity of the No 3 vein system, the companies report.

On the 400-ft level, face sample assays for the first 412.5 ft of drifting on the 3A vein average 0.35 oz gold per ton across an average width of 4.3 ft (or, alternatively, 0.23 oz across 6.8 ft), the companies say. Drifting on the 3A vein on the 400-ft level is continuing to the west and is also advancing on the 275-ft level.

A raise on the 3A vein is being driven from the 400-ft level to the 275-ft level. The first four rounds assayed 0.5 oz across an average face width of 4.3 ft over 24 ft, the companies report. Underground drilling below 400 ft continues to return good values in the multi- vein structure identified as the No 3 vein system, they say. Among the better results: Hole Width Grade Vein

(ft) (oz/t) 88U-67 2.50. 41 3A 88U-69 1 0.44 3B 88U-74 2.5 0.88 3A 88U-77 4.5 1.55 3A 88U-87 6 0.45 3A 88U-88 4 0.89 3 88U-90 6 0.85 3A 88U-91 1 0.48 3A 88U-93 1 3.83 3B 88U-95 6 0.75 3 Current reserves at the project, located 70 miles southwest of Timmins and in which Chesbar has a 60% interest and Murgold a 40% interest, stand at 423,546 tons grading 0.22 oz. Construction of a 150-ton-per-day test mill is expected to get under way in 1989.