Spectacular results bode well for Muscocho group’s Magnacon

Partners Flanagan McAdam Resources (TSE) (50%), Muscocho Explorations (TSE) (25%) and Windarra Minerals (VSE) (25%) have announced a flurry of drill ** results from the Magnacon property which can only be described as spectacular.

Pulled from a closely spaced drill program on the 350 level, they promise to add substantially to already announced reserves at the Mishibishu Lake,

** Ont., property. **

Scheduled to be in production by the first quarter of 1989, Magnacon hosts 1.4 million tons of grade 0.24 oz including a 319,040- ton block of proven

** reserves averaging 0.40 oz. **

But by focusing on the 350 level where Muscocho says widths and grades ** encountered during closely spaced drilling are much greater than previously indicated, operator Muscocho is exceeding even its own expectations. When a new reserve figure is announced, the average grade should be “closer to 0.4

** than 0.2,” said Flanagan McAdam President Jack McAdam. **

As reported (N.M., Jun 20/88), Hole No U88-20 intersected 73.3 ft of 0.542 oz from 24.7 ft to 98 ft. Muscocho also intersected 13 ft of grade 0.452 oz

** gold about 300 ft east of the Main zone at the 500 ft level. **

However, as indicated below the latest results from drilling on the 350-ft

** level are just as impressive: **

** Hole Oz True **

** No. gold/ton Zone width **

** 12A 0.219 oz M 15.0 **

** 13A 1.106 oz M 11.5 **

** 14 0.314 oz M 14.0 **

** 16 0.305 oz S&M 8.0 **

** 19 0.300 oz S&M 34.0 **

** 22 0.857 oz S&M 22.8 **

** 38 0.156 oz S&M 38.0 **

** 49 0.429 oz S&M 46.0 **

** 55 0.403 oz S&M 24.5 **

** 65 0.397 oz S&M 49.0 **

** S = South zone M = Main zone **

“It is anticipated that these results will be reflected by very low cost mining (already estimated at $165(US) per oz)”, said McAdam President Jack

** McAdam. **

After extending the Magnacon main ramp by 1,500 ft to access four levels for lateral exploration of the Main and South zones, surface drilling will

** begin soon to determine the site of a shaft. **

With the financial muscle of Echo Bay Mines (TSE), which has the right to earn a 22.4% interest in Flanagan McAdam, the Magnacon partners have already

** laid down the support structures for a 400-ton-per day mill. **