McAdam updates reserves at its McWatters gold bet

An updated gold reserve figure of 910,869 tons at a grade of 0.189 oz gold per ton is reported by McAdam Resources, at its McWatters project near Noranda, Que.

President John McAdam says surface drilling is continuing in a multi-phase exploration program at the McWatters project, with a series of close-in drill holes planned for the immediate future.

McAdam says that underground, a crosscut on the 400 level has advanced northward for a total distance of 425 ft, toward the jkl zones, with ore grade values expected at about 1,200 ft.

A second heading on the 400 level is also planned, to drive east towards the 702 zone.

A hoist is to be installed shortly, and will be used to facilitate dewatering and to access the deeper levels for diamond drilling and bulk sampling, McAdam says.

As in 1987, the exploration budget for 1988 at the McWatters project has been pegged at $6 million, 50% of which will be funded by McAdam Resources, the operator, with 25% each funded by Quinteko Resources, and Tashota Nipigon.

An underground diamond drill is expected to be working in the upper levels late in January, McAdam said.

The company also has a 75% interest in the Spud Valley gold project near Zeballos, B.C., which has a reserve status of 247,078 tons at a grade of 0.411 oz gold per ton. Tashota Nipigon has a 25% interest in this project.