Petromet, bids to increase Fifteen Mile bet reserves

In a bid to increase reserves at Pan East Resources’ Fifteen Mile Stream property in Nova Scotia, Greenstrike Gold Corp. and Petromet Resources have expanded their evaluation program at the property.

A $1.5-million drill program, scheduled to be completed by Nov 30, is currently attempting to increase gold reserves in the main Egerton-McLean area while testing a number of other targets.

Greenstrike can earn a 5% undivided interest in the 51-claim property by spending $1 1/2 million by February, 1989.

According to Petromet, which is earning a 25% interest in the property by spending $5 million over three years, 18 holes have been drilled since late July. At that time, preliminary reserves stood at 600,000 tons averaging 0.24 oz gold per ton. Of the 18 holes drilled since July, six are located in the Hudson area (one km west of Egerton-McLean).

Petromet says visible gold was observed in all six holes and this new mineralization is open along strike and at depth.

Drilling by NovaGold Resources immediately south of Pan East’s claim boundary has focused additional attention on the property, Petromet says. Gold values are reported from the Plenty Zone which extends for 1.5 km on Pan East’s property. “This represents a new potential zone of gold mineralization,” said Petromet President Donald Sawyer.

Petromet reported a cash position of $1,071,153 for the 6-month period ended July 31. That’s up from $944,707 during the same period last year. Petromet spent $762,397 on exploration during the period compared with $572,126 during the first half of 1986.

The company also reported a net loss of $82,500 during the first six months of 1987 which was down from $124,562 in the first half of 1986.

Petromet shares were trading recently on the Toronto Stock Exchange at $3.50 in a 52-week range of $2.20 and $4.35.