Nebex drilling Northbelt gold bet

One drill has started turning on the Northbelt gold property, immediately north of the Giant mine of Royal Oak Mines (TSE) in Yellowknife, N.W.T.

Calgary-based Nebex Resources (ASE) is financing 15,000 ft. of NQ-size drilling, says Vice-president James Kelly who was in Toronto recently promoting the stock. The program is designed to test nine separate induced-polarization (IP) targets identified this fall,

Nebex can earn a half interest in the ground from Royal Oak by spending $4 million by 1997.

Dennis Morrison of CME Consulting, which was contracted to do the survey, says the IP system which identified the drill targets is new to North America. Developed in Albania, the system provides better resolution of anomalies at depth and provides information on the dip and depth of the source. Information can be directly related to geological sections, Morrison says.

The system is being used to survey the adjoining Walsh Lake gold property, in which Nebex can earn a 75% interest from Kelmet Resources. This property will likely be drill-tested in March or April, Kelly says.

Nebex is also negotiating to acquire a block of ground to the north. The company reports a cash position of $700,000, as of June 30.