More than halfway through a 10,000-ft. underground program at the Paymaster gold mine project near Timmins, Ont., Placer Dome (TSE) and American Reserve Mining (ME) continue to intersect strong widths within zones 36 and 37.
At the 6,575-ft. level, about 500 ft. below the crosscut that returned 96 ft. of high-grade last month, Dome intersected 62.8 ft. averaging 0.21 oz. gold per ton in zone 37 and 16 ft. at 0.32 oz. in zone 36.
About 200 ft. to the east, hole 6032 hit a 34.7-ft. section grading 0.50 oz. Previous work prompted the speculation that the mineralized horizon rakes steeply eastward.
“What we’re getting is the 36 vein, which we knew about, and the 37 vein, which is wider than we thought,” said Bob Perry, mine manager at the adjacent Dome mine. He said it is too early to speculate on possible reserves.
American Reserve, which has seen some active trading lately, was 60 cents bid, 70 cents ask on July 2 after climbing to 80 cents the previous week. Because of the “favorable results” emerging from Paymaster, the company has decided to take its 36% interest in the property off the market.
Perry said the completion of the 10,000-ft. program would be followed by a feasibility study on the 36 and 37 zones. Assuming the results of the study are positive, the Paymaster ore could be hauled up the No. 5 shaft.
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