Deep drilling planned for Fontana

A deep drilling project, costing about $500,000, is planned for the Fontana property in Duverney Twp., Que., says Jean Depatie, president of Bay Resources & Services (ASE) and Stratmin (ME), the major partners in the property. Jilbey Industries (ASE) is another partner in the play, with a 25% interest.

The program involves a number of holes about 450 metres deep, which will test the theory that a number of gold-bearing veins identified on the property merge at depth.

“This will be the last surface program before the decision to go underground is made,” Depatie says.

Seven months ago a $5.68- million underground exploration program was recomm ended for the Fontana project.

In July, 1989, Minexpert Inc. of Montreal released a report stating that sufficient surface work has been carried out to justify the underground program plus an additional 6,000 metres of surface drilling.

Between September, 1988, and February, 1989, a total of $2.7 million was spent by joint venture partners extracting three bulk samples and about 10,000 metres of diamond drill core on the so-called Bunkhous-Hooper sector of the property.

Bay, 86% held by St. Genevieve Resources (TSE), has a 40% interest in the ground, Stratmin 28%, Jilbey 25% and St. Genevieve 7%.

During the course of the most recent work, two new veins were discovered. It is not known if the new veins are gold-bearing.

A shallow exploration shaft to a depth of 200 metres is recommended to provide access to a level 180 metres below surface.

Probable reserves total 485,000 tonnes grading 0.183 oz. gold per tonne while possible reserves stand at 395,000 tonnes averaging 0.182 oz.

Bay recently raised about $1.1 through the facilities of Exploration Duverney Inc. About $518,000 of that amount is budgeted for the Fontana property, according to the prospectus.

Jilbey has recently reached an agreement in principle with a Texas- based oil company to acquire a minority interest in several producing U.S. oil wells. The deal could give the junior Canadian gold explorer income approaching $50,000 per year.

Also, two Jilbey directors recently exercised their options to acquire 300,000 at 20 cents per share, netting the company $60,000.