NDU quiet despite results from Marg metals project

NDU holds a 66.67% stake in the Marg project while federal and Saskatchewan government-owned Cameco has the remaining interest.

Initial drilling in 1988 outlined a 2.1-million tonne deposit in two subparallel, possibly fold-repeated zones averaging 0.028 oz gold per ton, 1.87 oz silver, 1.90% copper, 2.60% lead and 4.99% zinc. The zone is 280 m long and remains open at depth.

While more results were released recently, NDU was stalled at a low of 75 cents on the Vancouver Stock Exchange.

Toronto-based Noranda Inc. (TSE) is funding NDU’s share of a $675,000 work program which included almost 2,000 m of drilling in five holes. Highlights from three of the holes included 3.6 m in (hole M88-22) of averaging 10.5% combined copper, lead and zinc, and 1.6 m in hole (M88-31) of grade 8.7% copper, lead and zinc. Assays from two additional holes are not yet available.

As part of the program, grid soil and geophysical surveys were conducted on a geologically similar target known as the Jane occurrence. It is located 7.5 km southwest of the area where the joint venture has been drilling.

An additional 100 claims were staked to cover gossans found in similar stratigraphy 3 km further east. As reported (N.M., Aug 29/88), Noranda has the option to acquire a 51% stake in NDU by purchasing treasury shares of the company at $3 to $12.50 per share.

If Noranda exercises its right to acquire 150,000 NDU shares at $4.50 each by Aug 31, the Toronto resources giant will raise its stake in NDU to 14.54%.

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