Toronto-based Kingswood Explorations (ASE) says it is planning to begin drilling Coulson Resources’ (ASE) Devon mine property east of Timmins, Ont. following a takeover bid for Coulson.
Pending shareholder approval, Kingswood has agreed to takeover Coulson Resources on the basis of one Kingswood share for each share of Coulson.
Coulson has 600,000 shares outstanding. The company’s principal asset is its 70% interest in Devon Gold Mines’ former Aljo mine which contains a 680-ft shaft and over 3,000 ft of horizontal development on a series of quartz veins.
While five holes drilled on various parts of the property in 1982 encountered four new zones parallel to the old quartz veins, they have yet to be fully explored.
During the 1982 program, only one hole was drilled through the old mineworkings and it intersected 3.1 ft of 0.391 oz gold per ton. Other results included 5 ft of grade 0.550 oz and 6 ft of 0.135 oz.
“We plan to go back in there and try to extend the new zones which were found in 1982,” Kingswood President Stephen McIntyre told The Northern Miner. He will finance the program through a placement of 796,000 flow through shares with Nim and Co. 1988 Ltd. Priced at 27 per share, the issue is expected to raise $215,000.
A portion of the proceeds are also earmarked for a 9-claim property in the Missinabie, Ont., region which is located on strike with ground owned by McLaren Minerals.
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