High River Reports Results from Snow Lake Program

The underground drill program now under way at the Snow Lake mine in northern Manitoba appears to be off to a good start. According to High River Resources (VSE), the operator of the exploration program on the former gold producer, the first five holes drilled to explore the down plunge extension of the Dick zone all intersected significant mineralization.

Results include (all true widths): 28 ft of 0.157 oz gold; 45 ft of 0.159 oz; 6.2 ft of 0.266 oz; 10.8 ft of 0.463 oz and 28 ft of 0.198 oz per ton.

The Snow Lake mine property produced 5,377,000 tons of ore from 1949 to 1958 at an average grade of 0.15 oz gold at a rate of 1,500 tons per day. Last month, High River announced that an updated mineral inventory study for the project had identified a combination of proven and drill-indicated geological, probable and possible reserves of 4,990,000 tons at an undiluted grade of 0.145 oz gold per ton (based on its own work and that of previous operators). Included in this mineral inventory is some 2,040,000 tons at 0.145 oz gold per ton found above the 1780 level, regarded as a combination of proven and drill- indicated probable geological reserves.

The underground exploration program, which is designed to verify geological reserves and add new reserves, consists of driving two cross cuts at the 1,780-ft level and 20,000 ft of diamond drilling to test the continuity of the orebody at depth.

The first cross cut has been completed and drilling is in progress. The first hole drilled from the second station on this cross cut (drilled vertically) intersected two mineralized zones between 144-170 ft and 229-248 ft respectively. The company said specks of visible gold were seen in core from the lower zone and assays are expected shortly.

High River has a 60% interest in the property while Nor-Acme Mines (TSE), holds 40%. Earlier this year, High River acquired about 20% of the outstanding shares of Nor- Acme and the two companies plan to amalgamate later this year. The resulting company would then have 100% of the Snow Lake mine property.

High River made an agreement earlier this summer with Inco Gold (TSE), giving it the right to earn a 50% interest in the property by providing the capital to place it into production, subject to a positive feasibility report. As part of the agreement, Inco Gold can also purchase up to six million shares of High River. It has already made an initial private placement purchase of 750,000 High River shares at $1.32 along with 750,000 warrants.