Golconda Res. trades heavily before testing Morning Glory

An announcement that Golconda Resources (ASE) is about to start drilling on the Morning Glory gold property in Idaho sparked a high degree of interest in the Calgary company recently.

In a day of heavy trading 1.23 million Golconda shares changed hands as the issue gained 75 to close at $1.00. The following day the issue gained another 17 .

Trading of over one million shares wouldn’t raise many eyebrows on the much larger Toronto and Vancouver exchanges, but in Alberta such apparent interest is unusual.

All the speculation has been generated by the proximity of Golconda’s Morning Glory property to the War Eagle project where War Eagle Mining Co. (VSE) recently pulled a 275-ft hole grading 0.16 oz gold and 1.6 oz silver per ton starting at a depth of 425 ft.

Located two miles apart, the two properties are on either side of the Quick Silver Mountain which rises to about 8,000 ft above sea level. Since the property is accessed by road, Golconda can easily fulfil its obligations under an agreement with local vendors which requires the company to spend $500,000(US) to earn a 75% interest.

Known areas of gold mineralization on the 1,200-acre property are believed to have potential for large tonnages of open pittable gold deposits.

As a result, Golconda will sink 10 drill holes to a depth of 300 ft to test a high grade system called the Main zone which has been tested over a strike length of 600 ft and shows an average grade of more than 0.3 oz gold

Golconda secretary Archibald Nesbitt says the Main zone is associated with a breccia pipe similar to the system which is one of the keys to War Eagle mineralization.

“We want to confirm the continuity and length of the main zone in association with the breccia pipe,” Nesbitt told The Northern Miner.

Selected gold samples from the Main zone across its 600-ft length assayed from 0.245 oz to as high as 1.896 oz.

According to Golconda, two additional areas of extensive low grade gold mineralization in the local latite flows and clastic rocks have been trenched and sampled over widths of up to 50 ft.