Corona/Golden Nevada drilling near Nickel Plate mine

The properties are either wholly- owned by Golden North Resources (TSE), which is owned about 23% by Corona, or are under an exploration option or joint venture agreement to Golden North. About 20,000 ft of drilling is planned, aimed to further define reserves on the Canty deposit and to indicate other zones of mineralization in other areas.

An 11-hole, 3,000-ft drill program was completed late last year on Golden North’s 100%-owned Canty deposit where earlier drilling indicated reserves of 656,800 tons grading 0.154 oz gold per ton. Golden North said nine of the holes intersected significant widths of gold mineralization with several assays exceeding 1.0 oz gold. Results from the 1988 program include: 179.5 ft with an average grade of 0.131 oz gold between 28.5 and 208 ft in depth; 30 ft of 0.525 oz between 181 ft and 211 ft; 60 ft of 0.264 oz from 332 ft to 392 ft; and 35 ft averaging 0.209 oz gold from 61-96 ft.

Two rigs are now drilling the Canty deposit in a 7,000-ft program designed to further delineate the deposit prior to a feasibility study and production decision.

Another rig is working Golden North’s wholly-owned South grid, west of the Good Hope mine as a continuation of the 10,000-15,000-ft drill program to evaluate several targets outlined by a program of geophysical surveys, soil sampling and geological mapping.

Golden North has also begun a 3,500-ft drill program to test gold targets on Hedley Pacific Mining’s (VSE) claims which border Corona’s Nickel Plate mine. By completing a $200,000 program, Golden North will earn a 25% interest in Hedley Pacific’s properties. Golden North and Corona also own about 36% of Hedley Pacific’s outstanding capital which constitutes effective control of the company.

A $100,000-drill program is in progress on the Eagle’s Nest property to the west of the Nickel Plate mine following a $300,000-program in 1988. The property is owned 40% by Corona, 40% by Golden North and 20% by Agio Resources (VSE).

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