Eagle River decline intersects gold zone

Earlier this month, the underground ramp intersected its objective — a gold-bearing shear structure known as the No 8 zone — at depths of 150 and 200 ft below surface.

The No 8 zone is reported to be 23-26 ft wide at the point of intersection on both levels, and contains quartz veins up to 10 ft wide. The zone also contains narrower “stockwork” quartz veins with an over-all quartz content ranging from 50% to 80%.

Both underground headings have been chip sampled and assays are awaited.

Central Crude President Richard Nemis reports “a small amount of visible gold was observed in both headings.”

Prior to intersecting the No 8 zone, the ramp also encountered another parallel quartz vein, interpreted as an extension to the No 6 zone.

A concrete ore storage pad has been completed on the Eagle River site, and another is being constructed at Hemlo’s Golden Giant Mine to store the underground material for later processing. The gold-bearing ore will eventually be run through a separate dedicated circuit, currently being contructed at the Hemlo facilities, said Nemis.

Tenders have been received and a haulage contract has been awarded for transportation of the ore-grade development muck to Hemlo.

The Eagle River deposit occurs as a quartz-vein shear zone within a granodiorite intrusive. Drill- indicated reserves stand at 1.77 million tons grading 0.51 oz gold (uncut) or 0.25 oz (cut). Shares of Central Crude have traded at around $5.88 recently on The Toronto Stock Exchange. The company has nearly 6.22 million shares issued and outstanding.

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