Eldor drilling buildswe tons at the Cheminis deposit

A major 50,000-ft diamond drilling program is adding tonnage to known reserves on the Larder Lake, Ont., property held by partners Eldor Resources, Kerr Addison Mines, Northfield Minerals and Northern Ranger Oil & Gas. Located four miles west of Kerr’s Virginiatown gold mine, the Larder property covers a 6-mile section of the Larder Lake break — a major structural feature striking across the area.

Since December, the drill program has focused on filling in areas of the Cheminis deposit; the largest of three deposits on the property. The program is aiming at testing the zone above the 1,200-ft level. The drilling appears to be closing the gap between the three zones (A,B,C) making up the Cheminis deposit, and a deeper zone of mineralization called the D zone.

We definitely expect an increase in reserves in the upper portion of the deposit,” Robert Clark, district exploration manager with Eldor, tells The Northern Miner. Based on previous work, the A, B and C zones host 272,000 tons grading 0.174 oz gold per ton.

Some of the better holes include CA87-2 which cut a 15-ft section averaging 0.189 oz. Included was a 5-ft section grading in excess of 0.29 oz. Eldor, the project operator, notes that the value of 0.29 was the upper detection limit of the analytical process used. More accurate assays, which should result in higher values, should be completed shortly.

Some results from the program are listed below.

Intersec- Grade Hole tion (ft) Oz gold/t CA86-1 503.4-507.0 0.574

592.0-597.0 0.217 CA87-2 967.0-972.0 0.29

972.0-977.0 0.143

977.0-982.0 0.136

987.0-992.0 0.102 CB87-5 877.0-880.3 0.124

885.7-888.7 0.219

888.7-892.9 0.29

923.4-928.4 0.29

938.4-942.0 0.135 CC86-2 162.0-167.0 0.233

167.0-172.0 0.168

172.0-177.0 0.11 CC87-4 1263.0-1269.2 0.29

1269.2-1274.0 0.09 CC87-1 698.0-703.6 0.19 CC87-2 762.0-765.0 0.29

765.0-768.0 0.29 CD86-1 1478.5-1483.9 0.137

1494.0-1498.0 0.122

1498.0-1502.0 0.185

1502.0-1505.8 0.142

Two other smaller deposits also within the Larder Lake Break, the Barber Larder and Fernland, host 100,722 tons grading 0.194 oz and 47,900 tons grading 0.169 oz respectively.

The partners hope to start an underground exploration program this summer, which will utilize the existing Cheminis shaft. The shaft extends to the 1,000-ft level. This program will include bulk sampling and underground drilling. Ultimately, if sufficient tonnage can be blocked out, the partners hope to use Kerr’s Virginiatown mill, located within trucking distance of the property.

Northfield and Northern Ranger have the right to earn a 30% interest in the property by spending $5 million.