Dundee-Palliser buoyed by Vezza drill results

Dundee-Palliser Resources of Toronto reports a net loss of $61,781 (1.4 cents per share) compared with net income of $67,656 (2.1 cents per share) for the same period in 1986. The 1986 first-half results included an extraordinary gain of $70,980 (2.2 cents per share).

Dundee-Palliser and joint venture partner North American Rare Metals are conducting a $2.2-million exploration program on the Vezza property, located 25 miles south of Matagami. It consists of 203 claims shared 50%/50% by Dundee-Palliser and North American.

Kennco Explorations, has the right to earn up to a 30% interest by funding additional exploration on the property where 60 diamond drill holes have explored along some 44,000 ft.

“Internally, we are very excited but we haven’t got enough of a handle on the distribution of the alteration within the strike zone,” said Dundee President Richard Brissenden recently.

The gold-bearing alteration zone has been outlined over a strike length of 6,900 ft with significant gold values obtained over a strike length of 2,000 ft.

Mr Brissenden is hoping that a 50,000-ft drilling program will justify his company’s confidence in the property. “After another 15,000 ft we can take a stab at estimating tonnage and grade,” he told The Northern Miner.

Recent results from three new holes are as follows: hole 39 intersected 13.1 ft averaging 0.19 oz gold and hole 40 cut a 22 ft section averaging 0.47 oz.

Hole 39 was drilled 330 ft below hole 37 which previously reported to average 0.25 oz over 14.1 ft. Hole 40 was drilled 330 ft below hole 4 which averaged 0.19 oz over 18.7 ft.

Drilling is continuing with two rigs and the joint venture partners plan to accelerate the program.

tse-listed Camindex Mines is providing the funds for Dundee- Palliser’s share of the 1987 exploration program while Tandem Resources is funding North American’s 50% interest. Under the terms of a recent financing, Camindex will spend up to $1.34 million by February, 1988, to earn a 71.6% interest in Dundee’s properties.

Dundee-Palliser shares were trading recently on the Toronto Stock Exchange at $1.05, below its 52-week high of $1.46 but well above its 37 cents low point.