Lingman Lake results so significant program will likely be

Exploration work is going full tilt at Lingman Lake, near the Manitoba-Ontario border.

About 25 people are on site, supporting a mapping, trenching and sampling program under the direction of Durham Geological Services of Timmins. They are working to provide joint-venture partners Agassiz Resources, Twin Gold Mines and Massive Resources with the geological information they need to decide whether or not to go ahead with the purchase of heavy equipment necessary to dewater an old 400-ft shaft on the property and to carry out exploration work underground.

The equipment would have to be brought into the isolated property this winter over an ice road from either Red Lake, Ont. or Red Sucker Lake, Man., Massive president John Sadowski told The Northern Miner in an interview this week after he returned from a visit to the property.

Assay results from the first 14 holes have been so encouraging, Mr Sadowski says his company will likely spend an additional $1 million over an above the $2.5 million already budgeted for 1987.

Massive can earn up to a 34% interest in the property.

The results not only confirm proven, probable and possible reserves of 1.5 million tons grading 0.26 oz gold per ton outlined in the late 1940s in an area east of a cross- cutting diabase dike, Mr Sadowski says, but they also up-grade the confidence level of these reserves, putting more into the proven and probable category.

One hole so far, No S-30B, drilled on the west side of the dike cut 15.5 ft of 0.415-grade material, opening up a whole new zone in that direction. Future holes in the current program will test the deposit to depths of 1,000 ft.

An estimated 1.5-million-tons of proven ore, grading 0.25 oz gold per ton, would be needed to put the property into production. Proven reserves now stand at 385,300 tons.

In addition, results of an induced polarization survey conducted 3,000 ft east of the shaft area show a geophysical expression identical to that of the main zone — an indication of excellent exploration potential in that area as well, according to Massive geologist Donald Borne who visited the site with Mr Sadowski.

To fund work on the property, Massive is planning to do a $4-million underwriting through the facilities of Brault, Guy, O’Brien Inc of Montreal some time in September or October. At the same time, the company plans to be listed in Toronto, Montreal and on the nasdaq system in New York.

The company currently has about six million shares outstanding, trading this week in Vancouver at about $2.25.