Two underground programs give Muscocho good results

Muscocho Explorations says the ramp on the Magino gold project north of Wawa, Ont., has been completed to a depth of 200 ft and a crosscut has been driven for 600 ft across the gold-bearing formation. Numerous gold-bearing veins were intersected in the crosscut, the company says, with assays up to 0.826 oz gold per ton over six feet.

Drifting has started on three of the more prominent veins and drifts on two other veins will be started soon.

Three holes drilled in an area to the northeast of the underground workings have intersected a new zone. Hole 55 assayed 1.51 oz over eight feet, Hole 54 assayed 1.66 oz over 11 ft and Hole 52 assayed 0.32 over four feet. The three holes intersected the zone over a strike length of 600 ft.

Muscocho has a 50% managing interest in the property with McNellen Resources holding the other 50%.

At the Magnacon property in the Mishibishu Lake area near Wawa, where Muscocho is operator and holds a 25% interest, an underground ramp has reached its objective at a depth of 250 ft.

A crosscut at that level has advanced 140 ft toward the main gold-bearing zone.

Surface drilling in an area 3,000 ft west of the Main Zone has cut a wide zone of alteration and encouraging gold values, the company says.

Flanagan McAdam Resources holds a 50% interest in the Magnacon property while Windarra Minerals holds the remaining 25%.

Muscocho also says it has entered into a number of financing agreements. A private placement of 50,000 ordinary common shares to MVP Capital Corp. to raise $150,000 has been negotiated, and the company has agreed to issue flow-through shares to MVP to raise $1.75 million to be spent on exploration. Muscocho has also agreed to issue flow-through shares to CMP 1987 Resource Partnership to raise $4 million.