Spirit Lake set to bulk sample Edwards project

Toronto-based junior Spirit Lake Explorations (ME) is set to spend $1.5 million to extract a 1,500-ton bulk sample from its Edwards gold property northwest of Wawa, Ont.

With 100,000 tons of grade 0.52 oz. gold per ton outlined in the Porphyry and Carbonate zones, Spirit Lake has hired engineering consultant Strathcona Mineral Services to drive a 1,000-ft. decline ramp to a depth of 150 ft. Assuming the necessary permits can be obtained, Strathcona plans to take out material from both the Porphyry and Carbonate zones.

Spirit Lake has elected to go ahead with the plan after a winter drill program confirmed previous estimates that are based on a 2-oz. cutting factor, a grade of 0.2 oz. and a minimum width of 5 ft. The drill program also indicated that the zones are open for at least another 500 ft. below surface.

With working capital of $205,000, President John Hansuld said several financing options are under consideration and the work should begin in July and take 3-4 months to complete. Working capital includes a $90,000 Ontario Mineral Incentive Program (OMIP) rebate from the winter drilling program. Future exploration may include surface drilling on the New North zone, which has already yielded a 7-ft. intersection averaging 2.59 oz. at a depth of 320-327 ft. The New North zone is about 200 ft. north of the Porphyry zone. Spirit Lake recently reported a loss of $60,692 or 1 cents a share for the nine months ended April 30, compared to a loss of $119,039 or 3 cents a share in the same period last year.