Report from Calgary: Asamera results disappointing

Asamera Inc. reports that a total of 134,726 tons of ore was processed through the mill at the Cannon mine in Wenatchee, Wash., during the second quarter of 1986. An 82.37% flotation recovery was averaged, resulting in the production of 28,428 oz of gold and 49,098 oz of silver. The financial and operating results for this period were disappointing due to unexpected occurrences, the company says. The encountering of seams of mud in a number of stope access drifts and crosscuts slowed progress and increased mining costs. In addition, repairs to the ball mill necessitated a shutdown in operations.

A diamond drill program on the B North extension orebody has confirmed quality and quantity of ore reserves and a mining plan is in preparation.

Mineral exploration is focussed on two other U.S. areas, both in California. A drill program in Inyo Cty. is under way. On the Cerro Gordo property the results of surface exploration and drilling have been encouraging. A total of 3,200 ft of drilling returned anomalous assays from 12 of the 22 holes.

Oil production in Sumatra has shown an increase over the same period last year. In Area A of north Sumatra gross production averaged 3,774 bbl of oil per day, up from 437 bbl in the first half of 1985. Production from the technical assistance area of the Corridor block in south Sumatra showed a 19% increase to 34,119 bbl per day. This increase in production was primarily a result of the commencement of export sales.

In Canada, the company participated in a total of 36 exploration and development wells resulting in 18 oil wells and 10 gas wells. Asamera has an average interest of 23% in these wells. Canadian net production for the first six months was 937 bbl of oil per day and 8.32 million cu ft of natural gas.

A new gold discovery in the Indin Lake area, N.W.T., has been announced by Petromet Resources. The Fortune gold zones are located on the 11,000 acres of Span claims, north of the Kim and Cass gold deposits now being explored by Echo Bay Mines. Two parallel zones, up to 30 ft in width and approximately 160 ft apart, have been prospected and sampled.

The north zone has been traced for 360 ft. Eight samples taken from the zone averaged 0.19 oz gold per ton. Thirteen samples were taken from the south zone and returned an average of 0.37 oz with a high assay of 2.29 oz across 4.9 ft. This zone has been traced for 490 ft. Both zones are open in all directions.

The gold mineralization occurs with quartz, arsenopyrite and pyrrhotite, and occurs within the same volcanic stratigraphy as that on the Kim and Cass deposits. The exploration program is continuing on these zones. The claims are owned by Petromet and Comaplex Resources International, each with a 50% interest.