Drilling near Granada mine gives KWG good gold values

Drilling in untested territory, partners KWG Resources (ME) and SEG Exploration (ME) have intersected gold values of up to 0.61 oz. per ton on their Granada mine property near Rouyn-Noranda, Que.

The Montreal-based explorers drilled three shallow holes about 825 ft. east of the Granada shaft to test the strike extent of the No. 2 vein system. Values include 0.1 oz. over 33.3 ft. in hole 92-95, 0.13 oz. over 4.5 ft. in hole 92-96 and 0.61 oz. over 18 ft., including 2 oz. over 5.1 ft. in hole 92-97.

KWG continues to test the No. 2 vein system and is completing closely-spaced drilling on the No. 1 vein system. A bulk sample will be taken on the No. 1 vein this fall to establish a better correlation between drill results and the grade of the mineralized zone.

In July, SEG completed a private placement of $250,000 to finance its 50% interest in the project.

Meanwhile, on the Quebec-Ontario border near Kirkland Lake, KWG has reportedly staked about one million claims for diamond exploration. Although KWG spokesman Pierre Laflamme confirmed that the company has been acquiring ground in the area, he said an official announcement would not be made until August 24.

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