Cross Lake drills QR

An induced polarization survey has outlined what may be a new gold zone at the QR Mine property in British Columbia, reports Cross Lake Minerals (CRN-T).

The anomaly, situated 400 metres east of the Main zone and centered at a depth of 100 metres below surface, occurs at the favourable contact of a basalt unit and overlying siltstones. In fact, most of the known mineralization at the property is found along this horizon, making it one of the key exploration targets there.

Prior to undertaking the survey, Cross Lake tested the three-dimensional inverted technique that was employed on known high-grade shoots in the West zone. The results proved encouraging enough to warrant its use over the entire property, resulting in the recent discovery.

Drilling is planned.

Cross Lake can acquire a 100% interest in the QR property by paying $800,000 to Kinross Gold (K-T) by May 2004. The former, in turn, has granted Gold Giant Ventures (GGV-V) a right to a half-interest in both the QR and its adjoining Cariboo property in exchange for $3.5 million in exploration expenditures, 100,000 treasury shares and $50,000 in cash (paid).

Kinross retains a back-in right for a 50% interest in QR if 1 million recoverable oz. are outlined. Should it exercise its right, the major must reimburse Cross Lake for twice the amount the company has spent on the property and complete a bankable feasibility study.

From May 1995 to April 1998, QR yielded 118,084 oz. gold from surface and underground reserve blocks. Run-of-mine ore was processed in an 800-tonne-per-day that remains fully permitted, as do the tailings pond and related surface infrastructure.