Temex hits gold and enters deal on diamonds

Preliminary results from Temex Resources‘s (TME-V) four diamond drill holes at its Whitney Township property look promising.

All four holes intersected significant gold grades at shallow depths. The Property is roughly 3 km west of the Pamour Open Pit which is currently in production by the PJV — a joint venture between Placer Dome (PDG-T, PDG-N) and Kinross Gold (K-T, KGC-N).

Intersect highlights include: 10.13 grams gold a tonne over 4.5 metres including 37.41 grams gold over 1 metre and 3.64 grams gold over 13.5 metres.

In a press release Temex says it believes the specific area (the C zone) has potential for a shallow gold resource. Two holes, located in the centre of the drilling pattern, tested a 180-metre strike length to vertical depths of 85 to 120 metres.

All holes returned broad intervals of gold mineralization containing sub-intervals of mid to high-grade gold. Temex is now waiting for the remainder of the nine holes drilled in the C zone and seven holes drilled 750 metres to the southwest.

Gold mineralization in the zone is associated with intervals of quartz and quartz-carbonate veining which constitutes 5 to 15%, and locally up to 80% of the sheared, altered mafic volcanic host rocks. Higher grades of gold are generally accompanied by pyrite, pyrrhotite and arsenopyrite sulphides. Coarse visible gold has been noted locally.

Temex has an option to earn up to a 60% interest in the property from the PJV.

The results come just a week after Temex issued news with regards to one of its prospective diamond properties.

On Thursday Dec. 1, Temex announced an agreement with Teck Cominco (TEK.DB-T) that allows Teck Cominco to take an interest in its Temagami Diamond Properties.

Temagami consists of Temex’s Wilson Lake and Latchford projects in Northeastern Ontario. The Property consists of 346 claims for 122,280 acres.

As part of the deal Teck Cominco will make an initial private placement in Temex for proceeds of $250,000 and provide a $750,000 loan to Temex for a diamond exploration program for the coming year.

Temex gives Teck Cominco an option earn an initial 55% interest by expending $3 million over 3 years and an additional 10% by expending a further $3 million over next 3 years for a total of $6 million. If Teck Cominco exercises the option it will make a second placement of $500,000 in Temex.

Temex retains the right to explore the property for gold and silver deposits.

“We are extremely pleased to have Teck Cominco as our strategic partner,” Temex president and chief executive Ian Campbell says in the press release issued on Dec. 1. “Their participation underscores the quality of our results to date.”