Crude ups Moss Lake reserves, 82 million tons, 0.031 oz. gold

Calculations completed by an independent consultant indicate that the Moss Lake property, 50 miles west of Thunder Bay, Ont., contains probable and possible reserves of 82.2 million tons grading 0.031 oz. gold per ton. Based on results to a depth of 800 ft., reserves in the probable category stand at 71.8 million tons while possible reserves add up to 10.5 million tons.

The new reserve figure, which adds 17 million tons to an estimation released earlier this year, incorporated all drilling data from the property, including 180,000 ft. previously drilled by Tandem Resources (ME) and Storimin Exploration (ASE).

According to Central Crude (TSE), which is earning a 60% interest in Moss Lake from Tandem and Storimin, the mineralization remains open in all directions.

But Crude is still trying to raise $2 million so that project operator, Noranda (TSE) can proceed with a 50,000-ft. drilling program announced earlier this year. A financing package which would have raised $7.7 million for Moss Lake and Crude’s other advanced project, Eagle River, fell through in February.

Instead, Crude says it plans to begin drilling shortly on a property optioned from Broad Horizons, a private company. Broad Horizons’ property adjoins to Moss Lake property to the northeast.

Meanwhile, time is running short for Crude, which would like to test the marshy areas at Moss Lake, including eastern extensions of the QES zone below Snodgrass Lake, before spring breakup.

But Stan Hawkins, president of Tandem Resources, says the timing of the drilling is not critical to the project.

“It would make things a little easier (to drill before breakup),” Hawkins said.