Economic gold mineralization has been encountered in a shallow drill hole at Kingswood Explorations’ (ASE) Devon property east of Matheson, Ont. The Devon claims, in Beatty Twp., are contiguous to the north of the project of Central Crude (TSE) and Dejour Mines (TSE), where 128,000 tons of grade 0.86 oz. gold per ton have been outlined.
Core extracted from the upper portion of a hole designed to test a major shear zone discovered by previous drilling assayed 2.95 oz. over 6 ft. at a depth of 63-69 ft.
Kingswood says hole BC-90-4, which also included 38 ft. of grade 0.04 oz., was drilled on line and 200 ft. east of where the company encountered high-grade gold mineralization in November. Earlier results included 10 ft. of 0.31 oz. and 18 ft. of 0.25 oz.
Under an agreement with Dalhousie Oil of Toronto, Kingswood can earn a 70% interest in the Devon claims by spending $400,000 over the next four years and making property payments of $100,000 during each year.
Having spent about $300,000 so far, Kingswood will complete about 5,000 ft. of drilling or 10 holes in this portion of the program. Results of seven more holes are expected to be tabled this month.
The company expects to spend about $2.5 million during 1990, on four projects including the polymetallic claims at Fenelon and Lanouiller twps. in Casa Berardi, Que., where a 3,000 ft. program is under way.
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