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The junior, which began the project in late 1987, is trying to prove the main orebody of the neighboring Kerr Addison mine downfaulted at that property’s western boundary and continues on to the Armistice claims.

Vice-president Guy Hinse says he is certain that wide-spaced drilling at the project has intersected the Kerr zone. The best result from underground hole 22-W900-4, drilled 900 ft west of the shaft, has been 9 ft of 0.196 oz gold per ton.

The core intersection, Hinse says, consisted of silicified pyritic mudstone, or flow ore, which is the same rock type which hosted most of the Kerr mine’s major orebodies.

A 10,000-ft drilling program costing $750,000 has been planned for the latter part of 1989, with an expected year-end completion date.

The property was explored previously but was never placed into production. An existing shaft has been dewatered and extended to a depth of 2,250 ft below surface. From that depth, a 1,200-ft drift was driven westward. Stations established along the drift have allowed for drilling of both the Sheldon zone above and the Kerr zone below.

Hinse says the Kerr zone starts at a depth of about 2,400 ft below surface and may continue to 7,000 ft. (The neighboring Kerr mine produced 10 million oz gold from 40 million tons of ore during its 50 years of operation.)

Current drill-indicated reserves stand at about 500,000 tons grading 0.15 oz, using a cut-off grade of 0.08 oz. Included in the total are reserves of about 138,500 tons averaging 0.277 oz from the Sheldon zone.

Hole 22-W900-4, drilled in May of this year from the 2,250-ft level, intersected the Kerr zone between 3,200 ft and 3,400 ft.

In all, the company has drilled 20 holes representing 18,119 ft from the 2,250-ft level, with the main target being the Kerr zone. The holes were planned to intersect the zone at 300-400 ft centres; Hinse said the holes may have been too widely spaced.

Future drilling of the Kerr zone, open to the west and at depth, will focus on the area intersected by hole 22-W900-4.

President Harvey Atkin reports the company raised more than $13 million, mainly through the sale of flow-through shares, during its past two fiscal years.

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