Canamax ups reserves at Kremzar gold project

An additional 264,000 tons of reserves have been outlined at the Kremzar gold property operated by Canamax Resources, the company reports. Located 25 miles northeast of Wawa, Ont., the Kremzar property has reserves of 1.1 million tons grading 0.235 oz gold per ton — up from 870,000 tons of similar grading reserves previously published by the company. Kremzar Gold Mines, an affiliate company of Algoma Steel Corp., holds a 50% interest in the property.

Accessed by a decline ramp, the property was explored on the 35-m and 65-m levels. Underground drilling, drifting and raising has confirmed the continuity, tonnage and grade of the upper 120 m of the deposit, the company says. Canamax officals are particularly pleased with the good ground conditions encountered in the underground exploration program. Widths averaging 6 m will result in low mining costs, the company says.

A final feasibilty study, expected to be completed by year-end, will enable the partners to make a production decision. Also, a 3,000-m drilling program is scheduled to start this fall. The drilling will test for extensions of the mineralized zones at depth and along strike, in addition to other gold occurrences on the large property.

Kremzar Gold, which is reviewing whether to participate with Canamax in the next stage of exploration and in the final feasibility study, says that Algoma Steel will acquire an additional 1.6 million Kremzar common shares. Algoma currently holds a 78.72% interest in the company.