Dolphin to spend $2 million on Cape Ray drill program

A $2-million surface drilling program is planned this year by Dolphin Explorations (VSE) for its Cape Ray gold property in southwest Newfoundland. Planned by the company, which is 44% owned by International Corona Resources (TSE), is 40,000 ft of drilling. Dolphin wants to increase reserves in two of the four known gold-bearing zones, 04 and 51, as well as locate any additional zones.

President Robert McCallum said, pending a successful drilling program, a second phase of drilling may be carried out later in the year.

The 1988 drilling follows a $6- million exploration program carried out last year which involved surface drilling on the four zones and underground development on the 41 zone. Geological reserves in the 04, 41 and 51 zones are estimated to total 1.14 million tons grading 0.28 oz gold per ton (based on a 5-ft minimum mining width and a cutoff grade of 0.15 oz).

The three zones consist of gold- bearing quartz veins and together make up what is known as the main zone which lies within the Cape Ray fault zone, a major shear structure. The main zone’s gold-bearing structures have been traced over a strike length of 6,000 ft and to a vertical depth of 870 ft.

The fourth known zone, Windowglass Hill, lies to the southwest of the main zone and has not been fully evaluated. Access road planned

The Cape Ray property is located about 15 miles northeast of Channel-Port aux Basques and is reached by helicopter. Pending government approval, the company intends to build a 12-mile access road to the property.

Dolphin acquired the property in 1986 from New Venture Equities, a wholly-owned subsidiary of Corona. The property was drilled prior to Dolphin’s involvement. In 1987, Dolphin drilled 57 holes representing almost 36,000 ft; underground drifting totalled about 2,200 ft.

The company is in the process of moving its corporate office to Toronto from Vancouver and is applying for a TSE listing. Sitting on Dolphin’s board of directors, in addition to McCallum, are Peter Steen, Anthony Walsh, John Donovan, Christopher Jennings and Paul Saxton.

In other exploration news, Dolphin is planning a trenching and evaluation of two gold showings at the Phillips Brook property adjoining the operating gold mine of Hope Brook Gold (TSE), which is located 96 miles east of Port-aux-Basques. Limited drilling may also be carried out later this year and in 1989.

And, in northern Ontario, surface work is planned for the Black River property located nine miles northeast of Hemlo.