Drilling at Rand Malartic significant: NSR Resources

Definition drilling of the 67 zone at the Rand Malartic, Quebec gold property of NSR Resources is under way with encouraging results being returned.

So far, 23 underground holes have been completed at 25 ft centers from the development heading which is located some 200 ft to the south of the zone, within its footwall.

Among the results are hole UG-2 which returned 0.856 oz gold per ton over 30 ft from 168.8 ft to 198.8 ft; UG-9 which returned 0.74 oz gold per ton over 23 ft from 204.5 to 227.5 ft and hole UG-10 which returned 0.52 oz gold per ton over 17.7 ft from 200 to 217.7 ft.

Full results from all holes to date are summarized in the table at the end of the article.

Drilling is continuing with two underground drills and one surface drill with a second surface drill on order.

The principal objective of the underground program is to detail and expand the known reserves of the 67 zone which are currrently estimated at 214 ,070 tons of 0.17 oz gold per ton. Too, the underground program is aimed at continuing the exploration of other subsidiary zones delineated by drilling from surface last year such as the 67 FW zone which was intersected by drill hole 85-2 which returned 0.857 oz gold per ton over 13 ft.

Based on the drilling to date, the true width for the entire mineralized 67 zone is estimated to be in the order fo 20 ft. Mineralization is consistent with the highest individual assay being 1.55 oz gold per ton over 2.7 ft, the company says.

Work to date indicates mineralization at the 67 zone, and probably the property in general, appears to be controlled by, and concentrated along, northeasterly faults.

One such fault has been projected southward from the 67 zone into the western strike extension of the 39 zone porphyry. Surface drilling at this spot has encountered gold mineralization in drill hole 86-3 grading 0.145 oz gold per ton over 7 ft hosted in an altered porphyry.

Additonal drilling to explore this newly discovered area as well as deepening of 86-3 is slated to start shortly.

Regarding the excavation of the 10 ft x 15 ft ramp which started in July, the company says about 960 ft have been excavated starting at the bottom of the 1,300 ft decline which was excavated during 1981.

The present heading is about 200 ft to the south of the 67 zone, and provides an excellent drill station, the company says. The ramp has also exposed 650 ft of fresh cut through the the 39 zone.

Timing constraints have required the discontinuation of the ramping advance. Instead, the company is considering excavating a smalller — about 8 ft x 8 ft — exploration tunnel to gain access to the targetted reserves of the 67 zone.

The company says the association of northeasterly faults with gold mineralizaiton at the 67 zone and the success so far in demonstrating this association elsewhere at the property are considered to be of such significance that a detailed re-evaluation of all other zones previously delineated is called for.

All intersections of similar faults with porphyries throughout the property are currently regarded as high priority targets for drilling from surface and underground, where possible. The company anticipates about 15,000 ft of surface and 7,000 ft of underground drilling to be completed by the end of the program.

The $2.3 million 1986 field program is being funded entirely by Cogesco Mining Resources. At the completion of the program, NSR, Cogesco and Rand Malartic Mines will hold 39.1%, 36.8% and 24.1% direct interest, respectively, in the property. In addition, NSR owns about 33% of the issued shares of Rand Malartic Mines.

NSR trades on the Toronto Stock Exchange where it has recently hit a new high of 66 cents . Its 52-week low is 21 cents . The company’s authorized capitalization is 20 million shares, of which 8.85 are issued and outstanding. Working capital at the end of Sept 30, 1985 stood at $25,143. Hole Section Grade oz/ton Width

(ft) (ft) UG-1 165.0-177.0 0.175 12.0 UG-2 168.9-198.8 0.856 30.0 UG-3 129.2-134.0 0.090 4.8 UG-4 184.3-189.3 0.653 5.0 UG-5 146.1-151.1 0.380 5.0 UG-6 137.3-147.0 0.055 9.7 UG-15 n/a assays pending UG-7 230.0-248.7 0.44 18.7 UG-9 204.5-227.5 0.74 23.0 UG-10 200.0-217.7 0.52 17.7 UG-11 189.6-208.0 0.33 18.4 UG-13 176.5-202.8 assays pending UG-14 165.6-204.8 assays pending UG-8 288.1-319.0 0.43 30.9 UG-12 235.0-245.0 assays pending

262.0-276.0 assays pending