The proceeds of a $2.5-million private placement will be used by Wheaton River Minerals (TSE) to increase the scope of exploration and development this summer at the Golden Bear mine in northwestern British Columbia.
Wheaton River holds an 81% interest in North American Metals, the owner of the Golden Bear mine. This summer’s $5-million program is aimed at expanding and defining two recent discoveries on the property.
The goal at the Grizzly deposit, which is situated below the former Main Bear workings, is to confirm the discovery with infill drilling and test for extensions to the north, south and at depth.
To date, six holes have tested this high-grade zone along a strike length of 150 metres. The weighted average of the intercepts is 16.3 grams gold across a width of 10.8 metres.
At the Ursa discovery, 5 km north of the millsite, the program is designed to bring the deposit to reserve status. Drilling is also planned to test the depth extension at the Ursa. The last and deepest hole in last year’s program returned 27.2 metres grading 12.2 grams gold per tonne.
The drilling will also test two targets along the Kodiak Fault which hosts the Ursa and Kodiak deposits.
Production at Golden Bear last year was 31,506 oz., compared with 23,917 oz. during the 6-month period in 1993 when Wheaton River controlled North American Metals.
Wheaton River reported a loss of $3.2 million for 1994, which compares with a profit of $1.8 million during 1993. Last year’s loss was attributed to a poorer-than-forecast operating performance at Golden Bear, and to a flood in September which caused extensive damage.
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