Misty Mountain eyes small, underground mine

Ongoing drilling at the Harmony gold project on the Queen Charlotte Islands, B.C., is returning high-grade gold values for Misty Mountain Gold (TSE).

Highlights include: a 137-ft. intersection of visible gold grading 1.2 oz. gold per ton; 45 ft. grading 0.44 oz.; 32 ft. grading 0.3 oz.; 23 ft. grading 0.68 oz.; 27 ft. grading 0.89 oz.; 85 ft. grading 0.93 oz.; 45 ft. grading 0.27 oz.; 19 ft. grading 0.33 oz.; and 25 ft. grading 0.34 oz.

Drilling is focused on the Specogna deposit (formerly known as Cinola), where Misty Mountain is attempting to outline high-grade zones of mineralization which could be mined on a small scale.

Previous operators outlined a reserve, minable by open-pit methods, of 34.5 million tons grading 0.064 oz. gold. However, they relinquished the property after their proposal for constucting a large-scale, open pit met with opposition related to environmental concerns.

Misty does not forsee any difficulty securing permits for a smaller-scale, underground operation.

The company is drilling off the deposit on a 65-by-65-ft. grid, with all holes drilled at roughly a 45! angle toward the southeast.

Previous drilling was generally vertical, missing what Misty Mountain interprets as a series of near-vertical, higher-grade structures within the hydrothermal, hot spring system that hosts Specogna.

The higher-grade structures consist of two main sets, bearing at 013! and 039! and dipping roughly 85! and 70! to the northwest.

The true width of the zones is estimated at 70-80% of the intercepted width.

Misty Mountain will drill 50 holes in total, results from 31 of which have thus far been released.

The company has 11.3 million shares outstanding on a fully diluted basis, and working capital totals $3.2 million. On full dilution, the company will receive an additional $9 million.