New Mishi find for Granges, MacMillan

Granges Exploration (TSE) and joint venture partner MacMillan Energy (VSE) recently reported a newly discovered surface-exposed mineralized structure on their Mishi project which they say may suggest a dramatic increase in mining widths and grade.

The property is a key part of the Mishibishu Lake area, about 45 miles southeast of the Hemlo gold camp. Mishibishu is shaping up as one of the most active gold exploration areas in the country.

Granges President Michael Muzylowski said carefully taken channel samples indicate that an upgrading of surface drill results can reasonably be expected to be similar to that experienced on the adjacent Magnacon project. Muscocho Explorations is the operator and 25% owner of the Magnacon property. MacMillan recently announced that Muscocho had agreed to acquire a $3.5-million minority equity stake in MacMillan by way of a private placement of 1.4 million MacMillan shares.

“We appear to be following in their footsteps,” said Muzylowski, referring to Muscocho’s work on the Magnacon property. “Our grade from previous drilling in this area was 0.166 oz, but now our grades appear to be going up.”

“If we maintain those values in our bulk sample we can then state we have a similar situation as Magnacon where their grades underground are higher than were indicated from surface drilling,” he adds. “I’d like to see more than 0.2 oz recoverable.”

According to MacMillan Energy, the structure is the previously unknown surface expression of the Mishi Main Zone No 2 lens. The showing now has been stripped on surface for a length of 550 feet.

Assay results from diamond saw channel sampling were taken at 35-ft intervals over 250 ft. The company says the zone is being blasted to a depth of 12 ft to obtain a bulk sample of about 4,000 tons to further test the nugget effect of the surface exposure of gold mineralization.

The company says assays from the first eight channels reveal a main structure ranging from 13-66 ft in width. An enriched zone within the surface structure averaging nearly 18 ft in width returned average values of 0.240 oz gold per ton for the first eight channels compared to the 0.143 oz gold per ton allocated to the enriched section of the lens in reserve calculations based on extensive diamond drill testing of the Main Zone. Average grade for the entire mineralized exposure in the eight channels is 0.167 oz gold.

Of the 1.1 million tons in reserves calculated to date, the No 2 lens has been ascribed 117,000 tons. The indicated overall grade of the Main Zone which remains open along strike and to depth, is 0.166 oz gold. Although 550 ft of mineralization has yet been exposed to date, Muzylowksi said the full length and width of the surface gold zone has yet to be determined.

The open pit implications of the new surface discovery are significant as well, Muzylowksi adds.

Crews are concentrating on recovery of a substantial bulk sample before a recommendation is made on whether underground evaluation should proceed by decline or shaft. A crusher is being transported to the property to speed up sample processing.

In addition to further assessing the Mishi Main zone surface discovery, crews will also strip, expose and channel-sample several new areas of surface mineralization extending over 2,100 ft and located mid-way between the joint venture’s Mishi West and K.K. zones. Substantial surface sampling from the newly exposed areas has returned numerous values between 0.20 oz gold and in excess of 3.0 ozs gold.

MacMillan said the recent surface discoveries further enhance the geological conception of several mineralized deposits extending along the 15-mile long strike length within the boundaries of the Granges-MacMillan joint venture.