Rio Algom drills at Green Bay, Nfld.

Diamond drilling is testing two induced-polarization (IP) anomalies on the Green Bay base metal property, near Springdale in northern Newfoundland.

The program is being carried out by Rio Algom (ROM-T), which can earn a half-interest in the project from Major General Resources (MGJ-V).

One of the drill targets is on the Butler Option property; the second is on the Indian Brook Option.

Rio began ground surveys in May and is currently conducting a 50-line-km IP survey. The company can earn its interest in the 25,000-acre, 600-claim project by spending $2 million over four years. To extend the option agreement to 1999, Rio must spend $400,000 in 1998.

The property is underlain by felsic volcanic sequences of the Catcher’s Pond Formation, which are closely related to the nearby Buchans rock sequence. The Buchans mines produced high-grade, volcanogenic-type base and precious metals over a 50-year period ending in 1976. Total production exceeded 16 million tons grading more than 22% base metals (copper, zinc and lead) with high silver and gold values.