Noront builds reserves at HSK’s Olive property

Underground work by partners Noront Resources and HSK Minerals on the former producing Olive mine property near Mine Centre, Ont., has verified the presence of two ore shoots.

Based on detailed sampling from three mining levels at 60 ft, 138 ft and 210 ft, the partners calculate reserves of 12,600 tons grading 0.34 oz gold per ton. In addition, 1,100 tons of broken ore grading 0.31 oz gold has been found in the second level stope.

The two shoots, which are accessible from existing mine levels, were found to extend to the limits of the mine workings. The mine was developed by a 235-ft inclined shaft.

The east shoot extends from surface to below the first level and averages 3.4 ft in width and 0.51 oz gold per ton across 257 ft of strike on surface. On the first level, the east shoot was sampled for 240 ft and assayed 0.165 oz gold. The west shoot was found on all three levels. The best values came from the third or deepest level. Here, a 45-ft section assayed 0.765 oz gold per ton across a width of 3 ft.

Based on these favorable results, Noront plans to start an 8,000-ft drill program designed to test the down dip and strike extensions of the zones. Two drill rigs will be on the property within a week.

Noront can earn a 50% interest in the property from HSK by spending $400,000 by April, 1989. This can be increased to 60% by paying HSK $100,000 cash. Funding for the program will come from a placement of flow-through shares which will net Noront $175,000.