New Island ups reserves at Nfld. gold play

A new geological resource has been calculated for the Glover Island gold property in western Newfoundland.

Partners New Island Minerals (ASE) and Newfoundland Goldbar Resources (CDN) report that analysis of previous drill results has led to a new resource of 4.5 million tons averaging 0.06 oz. gold per ton — an increase of 1.5 million

tons over an earlier figure. About 89% of the reserves are contained in the Lunch Pond South Extension Prospect, with the remainder hosted in the Kettle Pond South Prospect, which is about 3,500 ft. further north. The increase reflects the inclusion of a new zone of mineralization along the west zone of the Lunch Pond South Extension Prospect. Significant drill intersections from this area include 0.05 oz. over 30 ft. in Hole LPSE-11 and 0.08 oz. over 21 ft. in Hole LPSE-14.

Contributing to the increased resource is the use of a more accurate density factor.

An exploration program, to begin later this year, will focus on the area between the two resource blocks where untested geochemical and geophysical anomalies suggest both zones may be part of the same mineralized horizon. The property is wholly owned by New Island which, itself, is half-owned by Newfoundland Goldbar.