Colray completes La Ronge gold survey

Colray Resources has completed an airborne geophysical survey program on four of its large blocks covering some 25,000 acres in the La Ronge gold belt area in northern Saskatchewan.

W. J. Pearson, the company’s principal consultant, is currently locating surface grids on some conductors for the next phase of ground geophysical and geochemical surveys. Several of these new targets are in close proximity to an area which previously yielded from surface sample assays up to 4,000 parts per billion gold.

Visible gold had been found in surface samples by earlier exploration programs.

Many of the conductors are on what appear to be contacts between intrusive bodies and metasedimentary to the metavolcanic rocks. This is a similar environment found around the current producers in the Star Lake area.

Colray is also involved in the recovery and enhancement of two old mines. The Newcor (Creighton — Flin Flon area) and the Kirkroyal (Lebel Twp., N. E. Ontario). The Newcor project, funded by Colray ($800,000) for a 30% interest is now nearing the end of phase two. The property had 8,000 oz of gold in drill reserves, prior to the beginning of the present 45-hole program.

Several holes have intersected zinc mineralization ranging from 11.30% to 27.20% zinc and minor gold and silver. The Cor zone on the north end of the property is also showing interesting gold values.

The Kirkroyal mine in northeastern Ontario is nearing the completion of the first phase of exploration (funded by Colray in 1987, $500,000 to earn 20%) which included dewatering of the shaft to 1,000 ft and the clean up and testing of several levels. First results confirmed the old assay values in the mine records.

A. C. A. Howe International has recently completed a feasibility study. This project is held 20% by Colray and 80% by Canadian Gold Mines and associated companies. Bulk sampling and underground drilling will be part of the new program.

The Cogema Canada joint venture on the Onipoowuk Lake property, in the La Ronge gold belt, is now in its second year. Cogema also has first option rights on another Colray block north of the Onipoowuk project.

Colray is also investigating interesting potential gold properties in Nevada, California and Arizona as part of the company’s ongoing interna tional strategy.