Pangea calculates Fenn-Gib resource

Toronto-listed Pangea Goldfields has calculated a drill-indicated geological resource of 939,978 oz. gold at its Fenn-Gib property near Matheson, Ont.

The resource, based on 87,000 ft. of drilling, is contained in the Main and Deformation zones.

The former consists of a broad zone of disseminated and stringer mineralization within an area that measures 492 by 820 ft. Grades range from 0.017 to 0.88 oz. gold per ton and include discontinuous lenses with grades of 0.117 to 0.175 oz.

Using a cutoff of 0.029 oz. gold over a minimum width of 16.4 ft., the Main zone is estimated to contain just over 11 million tons grading 0.046 oz. The Deformation zone, by comparison, consists mainly of high-grade shoots ranging in thickness between 9.8 and 50 ft. and which grade in excess of 0.204 oz. These shoots occur within a mineralized envelope, up to 98 ft. thick, grading 0.058-0.088 oz. The shoots are continuous along a steep southeasterly plunge.

Using criteria similar to that applied to the Main zone, the Deformation contains 5.3 million tons grading 0.081 oz.

About 65% of the total indicated reserve of 16.4 million tons grading 0.057 oz. is contained within 650 ft. of surface. Preliminary analysis indicates that much of this resource can be extracted by open-pit mining. Only seven holes have been drilled below the 984-ft. level.

Drilling is ongoing, with four additional holes scheduled for completion by year-end. These holes are targeting an area between the 1,150- and 1,640-ft. levels, where the Deformation zone appears to widen.

Additional infill drilling will precede a feasibility study, to be undertaken later in 1995.

Pangea may earn a 60% interest in the Gib property if property vendor Cominco (TSE) opts to participate in the development of a mine. If Cominco elects not to participate, Pangea will be able to earn a 100% interest, subject to a 1% net smelter return (NSR) royalty during the first three years of production and, thereafter, up to a maximum of 3% (depending on the price of gold). To earn the option, Pangea must spend $3 million on exploration by July 30, 1998. Pangea may earn a 51% interest in the Fenn property by incurring $1 million in exploration expenditures by July 14, 1996. Should the vendors, Homestake Canada and Nanisivik Mines, elect not to participate, Pangea will be able to earn an additional 19% interest by spending a further $500,000 on exploration by Sept. 30, 1998. The property is subject to a 2% NSR royalty. Of the total resource, 3.8 million tons grading 0.038-0.044 oz. occur on the Fenn portion.