Montreal-based Diana Resources (VSE) had both good and bad news to report to its shareholders recently. The good news is that exploration is continuing at the Obatogamau gold property near Chibougamau, Que., where partners Diana and Minnova (TSE) have come up with some interesting results.
The bad news is that Diana has been unable to maintain its 35% stake in the property. Minnova now holds a 75% project interest while Diana’s interest has dropped to 25%.
As part of a $300,000 drill program, operator Minnova is testing the Chevrier zone which has already yielded 19.5 ft. of grade 0.31 oz. gold per ton at a depth of 1,066 ft. The intercept was within a 54-ft. intersection averaging 0.15 oz.
Identified over a strike length of 1,150 ft. and to a depth of 442 ft., the Chevrier zone forms the central portion of a major shear. According to Diana Resources President Peter Smith, gold mineralization is predicated on 3-10% pyrite in silicified sericitized carbonatized shear in gabbro.
As Minnova is running short of reserves at its nearby Opemiska division, Smith is hoping that Minnova will continue to focus on the Obatogamau as it searches for new sources of mill feed.
Currently, Minnova has completed almost half of a 13,000-ft. surface drill program, and Smith is looking for alternative sources of financing to maintain Diana’s 25% interest.
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