Overland access has been established to the Sulphurets project of Newhawk Gold Mines (60%) and Granduc Mines (40%) north of Stewart, B.C. A permanent camp is now on site and supplies are being hauled into the property for the winter work program.
Almost 2,500 ft of underground development (decline, drifting and raising) has been completed and results to date are extremely encouraging, the company says. Drifting returned 105 ft of 0.49 oz gold and 40.4 oz silver across an average width of 8.9 ft; mineralization in a raise designed to test the vertical extent of the West zone was similar in character, the company points out.
Newhawk President Donald McLeod confirms the project is near feasibility, noting the company’s Stage One report is almost completed. Construction could begin in March or April and the minimum mill rate would be 400 tons per day, he claims. Gold bullion would be produced on site but silver would go out in concentrate form. Power would be supplied from a small hydro electric plant that would generate about 1.5 megawatts.
Newhawk recently reported some exceptional values from in- fill and step-out drilling which extended the West zone along strike. Among the better values reported were: 18.1 ft of 0.88 oz gold and 1.5 oz silver in hole No 219; and 7.8 ft of 0.87 oz gold and 1.4 oz silver in No 220. A hole at Gossan Hill confirmed the previously indicated high grade nature of the zone. Hole No 248 returned 9.9 ft of 4.2 oz gold and 3.9 oz silver. McLeod says that several financing options are open to Newhawk for the project but his preference would be a gold loan. Three members of the Royex group recently joined the Newhawk board including Royex Chairman,Ned Goodman, Lacana President G. Leathley, and A. P. Walsh, corporate controller for Royex. So the financing alternatives available to Newhawk appear numerous. The new members represent three out of five seats on the board.
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