Vancouver-listed Magellan Resources Corp. says it intersected 35 ft of 0.4-oz-gold-per-ton material in a hole put down below some old mine workings on a property in western Montana.
The 36-claim Southern Cross property, as it is known, was mined at various intervals between 1866 and 1942, mainly by Anaconda Copper Mining. Some 380,867 tons were mined from a zone averaging 20 ft in width during the period, mainly from the 400-ft level. Grades averaged 0.59 oz, according to President Anton Hendriksz, before the mine was closed by a U.S. government order in 1942.
Magellan acquired the property by issuing 9.5 million shares to the vendor in 1986. Magellan now has 12.9 million shares outstanding.
The recent drill hole from surface intersected the gold-bearing zone at a vertical depth of 600 ft, 200 ft below previous mining.
The company now intends to drill additional holes along strike and down dip to depths of 1,000 and 1,200 ft to confirm the extension of gold reserves and the apparent widening of the zone. But Mr Hendriksz says drilling has stopped temporarily because of poor weather.
Magellan shares traded in Vancouver this week at about $1.05.
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