Meliadine joint venture under exploration

Exploration is under way at the Meliadine gold project, 9 miles north of Rankin Inlet, N.W.T.

Partners Cumberland Resources (VSE) and Comstate Resources (TSE) are planning a 3-phase program of ground geophysics and diamond drilling. The property covers a major west-northwest-trending structural break with a minimum strike length of 40 miles. Gold mineralization occurs both in shear zones and in iron formations.

Previous work outlined a preliminary resource of 900,000 tons grading 0.29 oz. gold per ton in the Discovery zone iron formation.

Last year, reconnaissance drilling in a 6-sq.-mile area returned significant gold values in 12 of 16 widely spaced holes. The most noteworthy discovery was a 90.5-ft. intersection grading 0.23 oz. on the WesMeg area, a few miles northwest of the Discovery zone.

Drilling is expected to get under way by mid-May, following ground geophysical work. Initially, drilling will be aimed at expanding last year’s reconnaissance program and testing new targets over a wide area. A second phase of drilling will concentrate on targets outlined in the first phase and in last year’s program.

Cumberland and Comstate expect to spend $1.8 million on the first two phases and the budget for a third phase has yet to be determined.