Partners drill Timmins project (October 20, 2003)

High-grade intersections are reported from the first four holes of a recently doubled, 10,000-metre program of definition drilling on Holmer Gold Mines‘ (HGM-V) Timmins property.

Highlights include the following:

q hole 1 — 22.6 metres (from 541.1 metres below surface) grading 4.5 cut grams gold per tonne, including 2.2 metres (from 541.1 metres) running 8.5 grams gold;

q hole 4 — 20.4 metres (from 566.3 metres) of 7.5 grams, and a 6.7-metre interval (beginning at 576.5 metres) of 10 grams.

True widths are estimated for 80-90% of the drilled intersections. The holes targeted the Hanging Wall and Ultramafic zones on 25-metre centres. Holmer says the results confirm that the grade and width of the ultramafic zone increase down-plunge.

Operator Lake Shore Gold (LSG-V) has sent two more rigs to the property to expand the gold resource in the Main zone, the Hanging Wall veins 1, 2 and 3, and the Footwall and Ultramafic zones.

A third rig will test new structural targets identified outside the resource area, including a second shear zone, 100-150 metres south of the main resource.

Three holes collared on the new zone cut strong alteration and anomalous gold values (less than 1 gram gold). Further drilling will test gold-in-soil anomalies to the west. Surface work has indicated shearing, strong sericitic-to-albitic alteration, and quartz veining with grab samples assaying up to 1 gram gold.

The company is reviewing the results of an airborne magnetic survey covering the entire property.

Drilling, which includes scout holes aimed at finding shallow, open-pit resources, is expected to wrap up by late November.

The Timmins property is home to an indicated resource of 422,000 tonnes grading an uncut 17.78 grams gold per tonne. When high grades are cut to 50 grams, the resource totals 422,000 tonnes running 13.7 grams. Both estimates employ a lower cutoff grade of 6 grams gold per tonne.

Lake Shore can earn a half-interest in the property by spending $2.5 million on exploration, paying $250,000 in cash, and issuing 150,000 shares over three years. The company must also confirm an indicated mineral resource of at least 500,000 oz. gold.

Earlier this summer, Holmer agreed to merge with fellow junior Acadian Gold (ADA-V) (formerly Tempus). Under the deal, Holmer shareholders will own 62.7% of the new company, with the remainder held by Acadian shareholders (T.N.M., Sept. 8-14/03).

Acadian’s most advanced project is Forest Hill in Nova Scotia. Initial results form the first six holes of an ongoing 25-hole, 5,000-metre drill program generally grade (uncut) between 2 and 60 grams gold per tonne over estimated true widths of 0.2-1.2 metres. The drilling is testing a proposed ribbon model similar to that found at Australian-listed Bendigo Mining’s New Bendigo project in Victoria, Australia (T.N.M., Aug. 25-31/03). The model suggests gold mineralization occurs in shoots hosted by horizontal-to-sub-horizontal ribbons that repeat at regular, predictable intervals at depth, and laterally in adjacent structures.

Acadian can acquire Forest Hill, subject to a 2% net smelter return royalty, by making cash payments and financing exploration.