Energex resumes drilling at Toodoggone Property

Drilling resumed at Energex Minerals’ Al property in the Toodoggone area of B.C. on June 17. The program has been expanded to include 25,000 ft of drilling which will be directed at the property’s larger potential and towards augmenting existing reserves, the company says. Exploration work on the Bonanza deposit is geared towards developing open pit reserves along 1,150 ft of strike and to a depth of 130 ft. Average width of the mineralization logged to date is approximately 30 ft and the block could encompass a reserve of 400,000 tons, claims Energex.

By mid-July, almost 1,500 ft of drilling had been completed in 11 holes on the Bonanza deposit. Among the higher grade results were 0.59 oz gold across 5 ft in hole No A87-11 and 0.44 oz over 6.5 ft in No A87-05. Good widths were encountered in several holes including A87-11 which returned 31 ft grading 0.18 oz gold.

Hole A87-08 returned 18.3 ft of 0.21 oz, No A87-09 averaged 0.11 oz over 14.7 ft, and there was 11.9 ft of 0.24 oz in hole A87-10. Widely- spaced holes are planned to test the Bonanza structure at depth and along strike, says Energex.

The company confirms an agreement has been secured for a private placement of shares with institutional investors in England. The agreement calls for the issuance of 3.2 million units at $1.02 per unit. Each unit consists of one common share and a warrant. The warrant is good for one additional common share at $1.43 for a period of nine months after the transaction has closed.

The company says the funds will finance ongoing exploration and help advance the project to feasibility over the next nine months. Separately, Energex has reached agreement with the cmp 1987 Oil & Gas Partnership for a private placement of of flow-through shares at $1.50 each. The fund will purchase a total of $1 million of Energex shares. The money will be a key component of the company’s 1987 exploration program.