In the Timmins camp of Ontario, drilling carried out by Kinross Gold (K-TSE) on the Hoyle property has determined that previously drilled gold mineralization has continuity at depth.
The property is held by Black Hawk Mining (BHK-T), and Kinross is carrying out the drill program in order to earn a half interest. The ongoing 29-hole program is showing that mineralization extends to depths ranging from 200 to 520 metres within existing zones and a new fourth zone.
Results from the first 10 holes proved promising: Hole 6412 returned 0.5 metre (from 255.1 to 255.6 metres in Zone 2) grading 12.58 grams gold per tonne; hole 6416 intersected 4.8 metres (410.4-415.2 metres in Zone 4) grading 12.71 grams; hole 6417 cut 2 metres (423.5-425.5 metres in Zone 4) of 6.42 grams; hole 6420 cut 1.35 metres (434.3-435.65 metres in Zone 4) of 9.13 grams; and hole 6424 cut 1 metre (494.45-495.45 metres in Zone 4) of 52.2 grams.
The remaining holes all intersected at least 0.7 metre of gold mineralization at depths below 278 metres, with grades between 1.67 and 8.43 grams gold.
Kinross is spending $1 million on the property over the winter-spring drilling season. Based on results, the firm will complete a development plan to bring the mine into production by mid-1999. Kinross will earn a 50% interest in the mine, subject to certain rights held by Thunderwood Resources (THS-T), by providing the first $12 million for development.
Elsewhere in the Timmins camp, Holmer Gold Mines (HGM-A) has started a $2-million drill program at its 100% owned project. This program is testing newly discovered multiple gold zones both along strike and at depth. Three holes have been drilled to date. Assay results are pending, however the company has reported that visible gold was encountered in one of the zones being tested.
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