Flow-through deal to fund Ego Wawa bet

Toronto-based Ego Resources (TSE) has entered a flow-through financing agreement with Tap-IV Resource Ltd. Partnership (TSE) to finance an extension of a recently completed 30,000-ft drill program at the company’s wholly-owned Goudreau, Ont., gold project.

Under the agreement, Tap will subscribe for $300,000 Ego flow- through common shares at $1 per-share.

When drilling resumes, Ego will attempt to delineate the newly discovered gold-bearing shear zone which the company traced for about 800 ft laterally and to a vertical depth of 600 ft.

The zone remains open at both ends and at depth, Ego says.

If a 10,000-ft drill program is successful, the company may decide to go ahead with an underground program designed to investigate the new West Main zone.

Hole 59, pulled from the West Main zone on line 17W, contained four significant gold intersections, Ego said. They include 6 ft grading 0.213 oz gold per ton, 6 ft of 0.314 oz, 16 ft grading 0.051 oz and 1 ft of 0.152 oz.

According to Ego President Edward Wenger, two massive sulphide bands carrying 15% chalcopyrite are similar to the property’s W-8 and B-C zones where previous underground tests have been carried out.

Drilling to determine the lateral and vertical extensions of hole 59 will follow immediately, Wenger said.