Drilling has resumed on the 40%-owned Michaud property of Garrison Creek Consolidated (COATS), about 60 miles east of Timmins, Ont., President William Harrison says.
The work is being funded by The Coniagas Mines (TSE) group, which is spending $1,340,000 on a 2-year, phase 1 exploration program, with Garrison parent Falconbridge Ltd. (TSE), as operator. Falconbridge holds the other 60% of the property.
Harrison says a single drill is at work on the project, with results expected within a few weeks.
Earlier drilling results released last November, from surface drilling on the western extension of the Ludgate zone, included hole M 133-02, which intersected a 14.8 ft core length of 0.09 oz gold at a depth of from 87.5 ft to 102.3 ft, hole M 133-03, which cut 10 ft of 0.11 oz from 333 ft-343 ft, and M 133-04, which intersected 23.1 ft of 0.41 oz at a depth of from 126.4 ft to 149.5 ft.
On completion of the phase 1 program, Coniagas can earn 2,680,000 shares of Garrison Creek at 50 cents a share. Coniagas has the option to earn an additional 1,920,000 Garrison Creek treasury shares by spending a further $960,000 on a follow-up program.
That would enable Coniagas to acquire Falconbridge’s 62.7% interest in Garrison Creek, to hold 90.25% of Garrison Creek’s outstanding shares.
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