Petromet and partners plan drillng at Fifteen Mile

A $2-$3-million diamond drill program is scheduled to begin in early January on Petromet Resources’ Fifteen Mile Stream gold property in Nova Scotia. The program’s objective will be to increase the current reserve base of 600,000 tons grading 0.24 oz gold per ton, President Donald A. Sawyer told a meeting of shareholders in Toronto.

Based on the amount of drilling completed to date, “we known that we have increased that reserve number,” Sawyer said. Following the completion of the January drill program, the company, along with partners Pan East Resources and Greenstrike Gold Corp., will consider an underground exploration program. Petromet owns a 38.6% interest in Greenstrike which in turn holds a 17% interest in Pan East. The reserve objective the partners are hoping to reach is 1.5 million tons grading 0.25 oz Sawyer added.

Petromet, unlike most Canadian mineral exploration juniors, receives modest cash flow from varying interests in oil and gas wells in western Canada. Revenue averages $20,000 per month. Sawyer noted that the company would like to increase its exposure to more oil and gas drilling in 1988. To this end, discussions are in progress with various potential joint venture partners.