WMC finds more gold

WMC International, the North American unit of Australian major Western Mining, has discovered more gold-bearing iron formation at the Meliadine West gold project, 20 km north of Rankin Inlet, N.W.T.

Six holes drilled on the western edge of the property intersected between 4.04 and 16.79 grams gold per tonne over 0.5 to 3.7 metres. The zone, dubbed Peter Lake, outcrops sporadically over a strike length of 1.3 km and is roughly 30 km west of the iron formation-hosted F zone, one of two deposits for which resources are currently being revised (T.N.M., Nov. 30/98).

Follow-up exploration is planned for 1999, with a preliminary budget set at $1.8 million. Several geochemical and geophysical anomalies will be tested as well.

WMC operates and owns a 56%-stake in the Meliadine West project. The remaining interest is divided evenly between Cumberland Resources (CBD-T) and Comaplex Minerals (CMF-T), each of which holds its stake on a carried basis until production. WMC can buy out 2% from each company for $1-4 million, depending on when the deposits are put into production.