Nemis “couldn’t be happier” as tonnage builds at Crude bet

As Central Crude (TSE) President Richard Nemis contemplates his company’s Eagle River and Moss Lake projects from a 42-ft. yacht on the waters of Georgian Bay, Ont., he admits that life couldn’t be better. On Aug. 3, results from the Eagle River joint venture with Hemlo Gold Mines (TSE) near Mishibishu Lake, Ont., added $1.13 to Central Crude’s share price.

Results, including a 20.8-ft. intersection of (cut) grade 0.32 oz. gold per ton, suggest that the tonnage potential of a outlined shear zone located a half mile east of the main Eagle River deposit is building towards the half-million-ton level. Hemlo Gold owns 60% of the project while Central Crude retains a 40% interest.

If a 7,000-ft. program designed to determine the extend of the No. 2 shear zone yields similar results to the ones released so far, the impact on any future mining operation could be dramatic, said Nemis who is fishing while on vacation.

Noranda Exploration a unit of Noranda (TSE), which is operating the program on behalf of affiliate Hemlo Gold, is expected to table the results of a feasibility study within the next few weeks.

Having outlined preliminary reserves in the Main zone of 1.77 million tons grading 0.25 oz. gold per ton, Noranda is looking for a future milling site at Eagle River, while drilling some previously untested zones on the property.

From data obtained so far on the No. 2 Shear, Noranda says it has outlined a westerly plunging gold zone 6-35 ft. wide along an 800-ft. strike length. Still open in all directions, the zone is estimated to contain 320,000 tonnes of (higher- grade) material.

The 20.8-ft. intersection was recorded at a depth of 288-309 ft. in hole 283, one of 10 holes drilled on the No. 2 zone. Of holes completed, two returned no significant assays. The other eight included a 65.6-ft. intersection averaging (cut) 0.14 oz. at a depth of 439-505 ft. below surface.

Gold values of up to 1.67 oz. over 9.8 ft. have also been reported within two parallel quartz veins on Eagle River’s No. 7 zone which is 1,000 ft. southwest of the Main zone. As the values were intersected updip from earlier drill intersections yielding 0.30 oz. over 17.7 ft., Noranda is conducting more drilling to test the new zone. Further drilling is also scheduled to be conducted on the No. 8 and 6 zones below the 1,000-ft. elevation.

Meanwhile, results from six stepout holes on Central Crude’s optioned Moss Lake porphyry gold- copper-silver project, 80 km west of Thunder Bay, Ont., have also been released.

With the right to earn 51% from Tandem Resources (ME) and Storimin Exploration (ASE) combined (the pair will together retain the remaining 49% interest), Central Crude is attempting to determine the viability of a low-grade, big-tonnage open pit operation.

The holes were designed to test the QES zone, which represents the eastern extension of a 5,000-ft.- long low-grade mineralized zone containing two million tons of grade 0.17 oz.

They were drilled along 400-ft. centres for an additional 1,200 ft. of strike and highlights include 400 ft. of 0.040 oz. gold at a depth of 170-570 ft.

According to Central Crude, the QES zone has been defined along a 2,600-ft. strike length to a depth of 600 ft. across average widths of 350-450 ft. The zone is open to the east and at depth and an infill drilling program is being conducted at 200 ft. centres along its entire strike length.

Nemis is hoping that an operation similar to other low-grade, big- tonnage operations like Galactic Resources’ (TSE) Ridgeway gold mine could prove viable at Moss Lake.