Toodoggone project affected by Serem (now Cheni Gold Mines Ltd)

The decision by Serem Ltd. to proceed with its Lawyers project, north of Smithers, B.C., will effect a number of properties in the Toodoggone area, including the Mets project of Manson Creek Resources and Golden Rule Resources.

The property is one of the best in the region and its real potential came to light last year when drilling outlined a gold-bearing shoot containing some 92,000 tons grading 0.334 oz gold. The joint venture describes the find as an “epithermal gold zone” that is still open along strike, down dip and along the plunge direction.

The mineralization is structurally controlled and is locally offset by post-mineralization faulting, says the joint venture. The main part of the zone appears to have a true width of 15 ft-30 ft and grades that average 0.3 to 0.5 oz gold per ton. A cross fault has been intersected to the south which has displaced the mineralized quartz- barite-breccia zone such that the last five holes missed the mineralized structure. That fault displacement has been interpreted geologically and could result in further delineation of gold mineralization to the south, they say say.

The major structure which appears to control these epithermal gold deposits has been traced for thousands of feet along strike, and many gold geochemical anomalies will be trenched and drilled this year. This year’s budget will be $1.1 million which will be funded 50/50 by Manson and Golden Rule.

Golden Rule recently added some big names to its board, including Ned Goodman of International Corona, Peter Brown of Canarim Investment Corp. and Donald Busby of Goldsil Resources.

Golden Rule has extensive interests in north-central Saskatchewan and is involved in the Bryenton Lake project with Goldsil and Saskatchewan Mining Development. A new gold zone has been outlined on the Bryenton, extending for a distance of 1,000 ft horizontally to vertical depths of up to 130 ft. Grades range from 0.09 oz gold over 18.3 ft to 3.02 oz gold over 1.3 ft. The mineralization occurs in four subparallel shear structures in volcanics five miles northeasterly and on strike with the Jolu discovery, being operated by Royex Gold.

Both companies have extensive holdings throughout Canada, particularly Golden Rule which has a tremendous amount of exposure for a so-called junior company.