Kinross hits gold at Vogel

Kinross Gold (K-T) continues to uncover deep gold intersections at Black Hawk Mining’s (BHK-T) Vogel property near Timmins, Ont.

Each of the 13 new holes intersected gold-bearing structures. Results include: 2 metres (from 508 to 510 metres in zone 4) grading 33.6 grams gold per tonne in hole 27; 3 metres (from 308 to 311 metres in zone IS) of 3.2 grams, 2 metres (from 313 to 315 metres in zone IN) of 5.9 grams and 1 metre (from 316 to 317 metres in zone IN) of 3.8 grams in hole 29; 3 metres (from 327 to 330 metres in an undetermined zone) of 5 grams, 14 metres (from 340 to 354 metres in zone IS) of 10 grams (with visible gold) and 5 metres (from 378 to 383 metres in zone IN) of 11.2 grams in hole 32; 0.5 metre (from 226 to 226.5 metres in zone IS) of 12.9 grams in hole 33; 1 metre (from 171.5 to 172.5 metres in zone 3) of 14.6 grams in hole 34; and 1 metre (from 283 to 284 metres in zone 2) of 8.1 grams in hole 35.

Assays from the last two holes of the program are pending.

As a result of drilling on the Vogel property, Kinross has calculated four resources, including: 223,000 tonnes grading 13.89 grams gold in zone 2; 488,000 tonnes of 7.82 grams in zone IS; 411,000 tonnes of 6.55 grams in zone IN; and 458,000 tonnes of 7.39 grams in zone 4.

The estimates are based on a 3-gram cutoff grade and 50-Metre centres around holes drilled to a vertical depth of 320 metres for zones 2, IS and IN, and 470 metres for zone 4. Zones 2, IS, IN and 4 are calculated to have true thickness values of 1.3, 2.3, 2.8 and 3.1 metres, respectively.

Under a development agreement reached with Blackhawk, Kinross will spend $1 million on the current drill program. A development plan to bring the property into production by mid-1999 will be based on those results and completed by the third quarter of 1997. To earn a half interest, Kinross must provide $12 million for development and act as project manager.

Through a pre-existing agreement, Thunderwood Resources (THS-T) is contributing, on a pro rata basis, 35% of the $1-Million cost of drilling, thereby retaining its right to participate in future development of Vogel and acquire a 17.5% interest.