Rea Gold seeking another Mt. Hamilton

Rea Gold (TSE) is busy drilling at its Mt. Hamilton mine in eastern Nevada, and results are proving positive.

The reverse-circulation program is testing the new Chester gold structure. Forty holes, totaling 7,640 ft., were drilled in an effort to define two separate zones of mineralization.

The Northern zone has been traced over at least 400 ft. and is open to the north and east. Mineralization is within 50 ft. of the surface. The gold grade averages 0.04 oz. per ton over an average thickness of 24 ft.

The Southern zone has been defined over 1,000 ft. It averages 15 ft. in thickness, with a gold grade of 0.03 oz. per ton.

Drill results are as shown below.

Rea has also carried out soil and outcrop sampling, as well as geologic mapping in the hope of finding a major gold deposit similar to the existing Mt. Hamilton operation.

Follow-up drilling is planned.

In other company news, Rea has signed a deal with several Canadian underwriters to issue a private placement of 8.3 million special warrants at a price of $3 each. This will net the gold producer $25 million to finance ongoing development at the Bissett gold mine.

HoleIntervalThicknessGold

(ft.)(ft.)(oz./t)

19580-95150.128

19750-85350.051

20150-65150.045

204220-235150.085

23720-55350.026

155-165100.058

24120-40200.038

24245-70250.030

90-9550.106

25055-75200.021

255-265100.035

251135-185500.079

25280-90100.031

120-150300.055

255100-125250.021

245-25050.092

257145-180350.020

259115-135200.053

26150-75250.040

090-105150.033