SMDC and partners Ramp planned at Fork Lakes

The Fork Lakes joint venture has decided to proceed with a $6-million underground exploration program on the Fork Lakes gold property about 80 miles northeast of La Ronge in northern Saskatchewan.

Partners in the venture are Saskatchewan Mining Development Corp. with a 36% interest, Golden Rule Resources (TSE) with 30%, Mahogany Minerals (VSE) with a 19% carried interest, and Shore Gold Fund with 15%.

Surface diamond drilling on the property has indicated high grade mineralization which continues onto the adjacent Transom Lake property. Partners on the Transom Lake property are Goldsil Resources (VSE) with 51%, Golden Rule with 30% and SMDC with 19%.

The underground program will be carried out jointly by the two joint venture groups. Its objective will be to confirm ore continuity. A combined preliminary geological reserve has indicated 175,000 tons grading 0.72 oz gold per ton. The ore zones are still open to depth and on strike.

A production decision is expected when the underground program is completed.

Construction of a decline ramp is scheduled to begin in mid-1988 and completed in early 1989. It will permit examination of the ore on three levels to a depth of about 425 ft.

The Fork Lakes property is about three miles southeast of the Star Lake gold mine and about four miles southeast of the Jolu project where Royex Gold Mining recently announced a production decision. The property is about two miles off Highway 102.