After a review of 1990 exploration results, partners Seven Mile High Group (VSE) and a unit of Inco (TSE) do not intend to carry out a second phase program on the North vein at the Vault gold property near Vernon, B.C. Inco, 60% owner and operator, reported that trenching and drilling on the vein did not provide “sufficient encouragement” to justify the bulk sampling and other surface work that had been contingently planned for the second-phase program. Grades encountered in the trenches were about half those encountered in previous drilling, and as a result, no further work is planned on the North vein.
Seven Mile High was advised by Inco that the next phase of work on the property should consist primarily of an underground program to test the Main zone, a deeper, lower grade epithermal gold prospect. But Inco also stated that further exploration of the major target outlined to date (the central epithermal area) would require a costly underground effort that could exceed $10 million in total work commitments.
The joint venture is exploring the possibility of bringing in a third partner to help fund the cost of the underground exploration and a feasibility study, if warranted.
On the corporate front, current management of Seven Mile High is continuing to pursue the return of funds it says were borrowed and otherwise removed from the company by previous management.
The company is also taking defensive legal action to set aside garnishee orders served on it by former president Maurice Hamelin for amounts varying between $785,000 and $905,000. The court set aside the two first actions, and efforts are continuing to have the remaining actions set aside.
Be the first to comment on "Seven Mile High seeks partner"