Lithos sees more reserve potential at Wrightbar

New reserve figures are likely to come from planned exploration drilling at the Wrightbar mine near Val d’Or, Que. Owner Lithos (ME), which dewatered the workings at the former producing mine last winter, sees considerable potential for additional mineralization in the untested rock below the 1,000-ft. level.

The mine has produced 30,000 tons of ore since February, almost entirely from a structure called Vein A in the East zone of the deposit. Preliminary reserve calculations for Vein A show 200,000 tons between the 300- and 500-ft. levels. Four other veins exist on the East zone, and the West zone has a similar Main vein. Recovered grade most recently was 0.27 oz. gold per ton, up about 15% from last May.

The company is finding that the style of mineralization at Wrightbar — ore shoots in vein structures — differs from the shear zone model that had been used to exploit the deposit while it was in production in 1988. Fully four-fifths of the ore extracted since underground work resumed has come from areas outside the reserve blocks that had been outlined by the previous operator.

Drilling to the 1,000-ft. level has confirmed that the ore shoots extend to that depth. Lithos plans to test below 1,000 ft., and east and west along strike of the veins.

Private placements of Lithos stock have so far raised $1.8 million for rehabilitation of the West zone. The placement, priced at 50 cents per unit, consisted of 3.6 million units of one share plus one warrant to purchase an additional share at 65 cents. The Montreal Exchange must still approve the issue for the placement to proceed.