The drilling is part of a joint venture with War Eagle Mining (VSE) where Nerco can earn a 51% interest by spending $2 million(US).
The company reports that assay results from 10 of the 13 holes drilled by Nerco include some mineralized intercepts, “but are of lesser significance.”
Mineral intercepts from the three significant holes drilled by Nerco are as follows: Gold HoleFromToIntervalSilverGoldEquivalent No(ft)(ft)(ft)(oz/t)(oz/t)(oz/t) W51410495 85—-0.108
including 410445 35—-0.192 445495 50—-0.046 W40190640450—-0.134
including 1903301400.1830.1390.169 415450 350.5510.1970.106 4756401652.35 0.1960.235 W46310335 25—-0.113 600615 15—-0.133 785790 5—-0.184
War Eagle noted that Hole W40 was “likely drilled within a narrow mineralized east-west crossing structure.” The company’s gold equivalent calculations use a factor of 60-to-1 gold to silver.
Hole W51 is 1,200 ft north of hole 16-2A, drilled last fall. The hole, drilled to 495 ft, ended in mineralized volcanic sediments. Hole W40, released in early October, is 300 ft east of hole 16-2A.
Vice-President Eric Gilstead indicated that the gold and silver mineralization appeared to occur in a series of mineralized fault structures.
Much excitement was created by the drilling program of last fall. War Eagle peaked at $8 before falling back to below $1 per share. Nerco’s drilling has been the subject of further speculation. War Eagle’s stock price rose by over $1 per share only to give up most of those gains upon release of the latest results. At presstime, the issue was trading at $1.18.
Five holes remain in the current drilling program.
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