South-Malartic cuts new zone at Croinor

Drilling by South-Malartic Exploration (MSU-V) has cut a new zone of gold mineralization in the heart of the Croinor property, 75 km east of Val d’Or, Que.

South-Malartic recently sank seven angled holes on an area of gold mineralization identified by last summer’s trench #2, where samples ran as high as 8.8 grams gold per tonne. A single hole to test the zone at the time cut 5.6 grams gold over about 1.2 metres, beginning at 25.6 metres below surface. Highlighting recent results are:

• Hole CR-02-02 – 0.6 metre (beginning at 21.4 metres below surface) grading 2.35 grams gold;
• Hole CR-02-03 — 0.46 m (from 5.6 m) running 9.8 gram gold, and 1.2 metres (from 33 m) of 2.86 grams gold;
• Hole CR-02-04 – 1.5 m (from 47.9 m) of 6.2 grams gold;
• Hole CR-02-06 – 0.46 metre of 13 grams gold; and
• Hole CR-02-07 – 0.6 metre of 8.6 grams gold.

All seven of the holes returned more than 1 gram gold per tonne. The company says the holes define a zone measuring about 92 by 10 metres and reaching to a depth of about 60 metres. Gold mineralization is associated with quartz-tourmaline veins in a quartz and feldspar porphyry dyke. The gold also extends outside the dyke and into the surrounding volcanic and intrusive rocks.

The new zone is situated more than 600 metres northeast of the Croinor deposit in a new geological setting.

A 7,000-metre drill program continues at Croinor.

The news sent the company’s shares up 3 or 10% to 33 in midday trade on the Canadian Venture Exchange. The issue trades in a 52-week range of 17 to 35.

Late last year, South-Malartic extended mineralization in Croinor’s Eastern zone another 137 metres to the east. Four of ten holes returned between 2.5 and 20 grams gold per tonne over widths ranging from 0.3 to 1.2 metres. The best interval was a 0.71-metre section running 20 grams gold. The remaining holes surrendered less than 2 grams gold.

Four of 21 holes on the Western extension returned more than 3 grams gold over widths generally less than 1 metre, and extended known mineralization by about 180 metres.

Earlier in 2001, drilling by the junior tripled the resource base at Croinor. An estimate prepared by Geostat International pegs resources at 3.1 million tonnes grading 3.04 grams gold per tonne (301,000 contained ounces gold) using a cutoff grade of 1.15 grams gold. That’s up from a 2000 prefeasibility study, which had resources at 1.1 million tonnes of 2.44 grams gold (89,543 contained ounces) using a 1-gram cutoff.

Mineralization consists of chalcopyrite, pyrite and native gold, and is found in three related structures: shallow, sub-vertical shear zones within an altered dioritic intrusive; tension veins perpendicular to the shear zones; and brecciated diorite. The deposit remains open at depth and along strike.

From 1996 to 1997, Croinor was the site of a small open-pit gold mine operated by Calgary-based Goldust Mines, which changed its name in 1997 to Huntington Exploration (HEI-V). While Huntington remains the property owner, South-Malartic can acquire a 70% interest by spending $1.5 million on exploration by mid-2002.