Kinross to test depth of Goose (August 06, 2001)

Kinross Gold (K-T) has begun drilling at the Goose Lake deposit of Wheaton River Minerals (WRM-T). It is the largest of six deposits that constitute the George Lake project in Nunavut.

Kinross can earn a 70% interest in the project from Wheaton by spending $20 million over four years. More than $3 million has been spent.

The 3,000-metre program will test the deposit down-plunge to depths of between 400 and 500 metres. To date, the deepest holes on the deposit cut mineralization at 320 metres, returning 13.3 metres grading 23.6 grams gold per tonne. Two other intercepts from the same hole ran 33.7 grams over 2 metres and 22.4 grams gold over and 2.8 metres.

Drilling will also test several outlying targets.

Earlier this summer, drilling by Kinross increased the size of the Goose Lake deposit. Twelve holes confirmed that the South Extension, discovered by Kinross last year, is part of the Main zone. The zone now measures 600 metres in strike length and extends for 300 metres below surface.

Hole 65 returned the widest interval — 17.45 metres (starting at a down-hole depth of 6.6 metres) grading 11.8 grams gold per tonne. The highest grade, 52.3 grams, came from a 2-metre interval (starting at 125.35 metres) in hole 67. Several holes cut more than one intersection and contained visible gold.

Mineralization at Goose Lake occurs in several parallel zones surrounding a newly discovered fold nose that trends northeasterly and plunges moderately to the west. A close association with quartz veining in iron formation is apparent.

At the end of 2000, Kinross pegged Goose Lake with an inferred resource of 3.9 million tonnes grading 12.51 grams gold. Indicated resources in the other five deposits at George Lake combine to top 2.6 million tonnes grading 9.95 grams. Another 1.3 million tonnes grading 10.11 grams are classified as inferred.

In other news, shareholders of Pentland Firth Ventures (PFO-T) have approved a deal whereby Kinross will clear off part of Pentland’s debt to the company in exchange Pentland’s mineral exploration assets, specifically 290 sq. km in the Timmins area of northeastern Ontario, much of it adjoining Kinross’s property. As part of the deal, Pentland will issue 8.5 million shares to Kinross to cover a further $854,700 in debt.

Meanwhile, Pentland, in a reverse-takeover, plans to issue 31.5 million shares to acquire all of the shares of Tesoro Energy. Pentland would continue under the name Tesoro Energy as an Alberta corporation engaged in hydrocarbon exploration.

Following the deal, Kinross will own 16.4%, or more than 10.6 million shares, of Pentland. The deal is expected to close by July 25.