Partners extend Western Discovery zone

Shares in Exall Resources (EXL-T) shot up a nickel, or 18.5%, to 32 in afternoon trading in Toronto after the company reported some impressive results from widely spaced drilling on the Gold Eagle mine property in Ontario’s Red Lake gold camp.

The best core-interval from the latest batch of holes was encountered in hole no. 32, and runs 10.9 oz. gold per ton over 1.2 ft., beginning 343.2 ft. downhole. The hole contained visible gold, and included, among others, a 1.8-ft. (from 467.1 ft.) stretch averaging 2.4 oz.

Results form the remaining holes include:

• Hole 30 — 1.6 ft. (from 651.2 ft.) running 0.2 oz. gold per ton;
• Hole 31 — 1.3 ft. (from 341.3 ft.) of 0.3 oz.;
• Hole 33 — 1.5 ft. (from 319.7 ft.) averaging of 2.8 oz.
• Hole 34 1.8 ft. (from 295.8 ft.) grading 0.7 oz., and 1.6 ft. (from 364.8 ft.) of 1.6 oz. gold.

Of those holes, only no. 30 failed to yield visible gold. Exall says the drilling has extended the Western Discovery zone by some 270 ft. to 1,500 ft. in an east-west direction; at last report, the zone measured 1,150 feet north to south. The gold-bearing vein system remains open horizontally to the north, south, and east.

Exall expects Micon International to deliver an in-depth technical review of some 82,000 ft. worth of drilling in mid-November. Meanwhile, drilling continues on the Bruce Channel target zone, with results anticipated later this quarter. The company has engaged AMEC Earth & Environmental to complete a baseline environmental investigation at Bruce Channel.

Southern Star Resources (SSR-V) officially earned its half-interest in the project at the end of August by delivering to Exall 1 million shares and $85,000 in cash. That payment followed $2 million worth of exploration funding, which was completed 18 months ahead of schedule owing to the very encouraging results.

The Gold Eagle mine produced around 40,000 oz. gold between 1937 and 1941. The property has not been subject to any significant exploration since those operations ceased. The property is bounded to the north by the former-producing McKenzie Red Lake mine, which produced 651,156 oz., and to the east by the Cochenour Willans mine which poured some 1.2 million oz.