Gunnar, City Gold to give Dassen gold bet option

Gunnar Gold Inc. says an agreement has been entered into with Dassen Gold Resources for an option to earn an undivided 50% working interest in the Normetal South property located in Desmeloizes and Clermont Twps., in the Casa Berardi area, northwestern Quebec.

The property consists of mineral claims comprising approximately 10,000 acres.

Gunnar, in joint venture with City Gold Corp., a wholly-owned subsidiary of Ventech Healthcare Inc., has recently completed a small reverse circulation overburden drilling program to cover assessment work programs on the property.

The joint venture partners have an option to earn an undivided 100% working interest in this project. The agreement with Dassen provides an option for Dassen to back in for an undivided 25% interest in the agreement within one year.

The property was staked to cover a series of iron formation-tuff horizons stratigraphically above the Normetal Mine rhyolites which are considered to correlate with the horizons that contain the Agnico- Eagle, Golden Knight and Golden Hope deposits in the nearby Casa Berardi area.

One of the drill holes, located a short distance south of the favourable horizons, contained encouraging quantities of delicate gold, suggesting that gold mineralization is present in the bedrock of the immediate area.

It is possible that gold in the overburden is indicated by a number of airborne E.M. and magnetic anomalies located on company lands some 300-400m north- northwest of the drill hole location.

The lower section of glacial till, immediately above bedrock, from 16m to 21.9m, contained a high proportion of delicate gold with the best two sections, each 1.5m thick, showing: 1.Nine grains of delicate gold out of 10 gold grains, and 2.Twenty grains of delicate gold out of 23 gold grains.

In general, the holes drilled to date show the area to have a high background gold content. Gunnar is awaiting final recommendations from its consultants before proceeding with a detailed program to follow-up this encouraging development and to investigate the favourable horizons on its extensive property holdings. The joint venture partners have also acquired a further 500-acre claim block.