New drill targets could boost Nicholas Lake gold reserves

A number of new drill targets were identified during a recently completed exploration program by Athabaska Gold Resources (TSE) on its Nicholas Lake project, 57 miles north of Yellowknife, N.W.T.

The Vancouver-based junior is about to start a 10,000-ft. diamond drill program to test these targets.

The objective is to expand the reserve potential of the property in areas other than the main zone which already has preliminary reserves of 944,000 tons grading 0.46 oz. gold per ton to 1,000 ft. below surface. The new targets were identified during a summer program of prospecting, geology and geophysics completed in October.

The program identified five new targets in a favorable structural belt (1.2×7.4 miles), extending northeast from the old Discovery mine through the Main showing and Nicholas East area.

Athabaska said all five targets have favorable geology and geophysics, and three have “significant” gold values at surface.

Athabaska is operator at Nicholas Lake and holds a 60% interest. Chevron Minerals offered its 40% interest to Athabaska under its

right-of-first-refusal clause.

At presstime, Athabaska announced it had arranged a private placement with two of its directors for 1.32 million shares at 25 cents per share. The proceeds would be used to purchase Chevron’s interest for $300,000. However, this private placement is still subject to a right of first refusal by Royal Oak Mines (TSE).

Earlier this year, Royal Oak announced it would be investing up to $1.16 million by a series of private placements that would result in it holding 4.9 million common shares of Athabaska.