Drilling extends zones at Granges, MacMillan gold bet

Recent drilling at the Mishibishu Lake gold project in northwestern Ontario has extended the main ore zone to the northeast and northwest and also the west zone which is located 2,500 ft west of the main orebody, joint-venture partners Granges Exploration and MacMillan Energy report.

Major intersections occur in hole M-178, which was drilled 164 ft east and north of the main zone and encountered 10 ft of 0.32 oz gold per ton; hole M-181, a 330-ft stepout in the zone’s northwest sector, which cut a 40-ft section of 0.14 oz, including 6 ft of 0.26 oz and 7 ft of 0.44 oz; and, hole M-181 W-1, which intersected 20 ft of 0.24 oz (uncut) or 0.14 oz (cut).

Three holes, spaced at 164 ft, have been completed on the west zone, which was discovered by drilling a weak vlf anomaly. Significant intersections include the discovery hole, M-164, which encountered 9 ft of 0.17 oz, and hole M-190, drilled 164 ft north and which intersected three zones, 6 ft of 0.39 oz, 3 ft of 0.17 oz and 2 ft of 0.35 oz.

A third mineralized area on the property, the K. K. zone, located about 5,500 ft west of the main zone, is being explored.

Granges and MacMillan will soon be starting a $2.5-million underground program on the main zone. A further $1 million has been budgeted for drilling up to May of this year; the drilling program includes 15,000 ft on the main zone, 20,000 ft on the west zone, 7,000 ft on the K. K. zone and a further 7,500 ft on other areas of the 22,500-acre property.

The budget for the entire project calls for $4.5 million to be spent by the end of May. Included in the budget is $550,000 for preliminary metallurgical and engineering studies, road-building and site prepara tion.