Kinross continues drilling at Hoyle Pond property

Definition drilling by Kinross Gold (TSE) is continuing on the 1060 zone at the Hoyle Pond mine, near Timmins, Ont.

To date, 21 holes totaling 6,000 metres have been drilled on the new zone, which is 400 metres south of the current mine workings. The holes have intersected a highly sericitized, silicified and pyritic alteration zone which ranges from 50 to 200 metres in width. Mineralization occurs in two areas known as the A and B horizons.

Significant intersections from the A horizon, which is situated along the north margin of the altered zone, include 8.3 grams gold per tonne over 1.4 metres in Hole 2643 and 6 grams over 1.5 metres in Hole 2644. The B horizon is made up of two silicified sulphide-rich zones in the central core of the alteration zone. Locally, the two zones converge into one large zone with a true width of up to 30 metres. Some of the better gold intersections from this horizon include: 24.6 grams over 8.7 metres in Hole 2645, 24.4 grams across 5 metres in Hole 2658 and 12.1 grams over 8.4 metres in Hole 2669.

Gold is generally associated with pyrite and traces of arsenopyrite; and locally, within the more siliceous sections, free gold has been noted. The ground appears to be competent within the alteration zone and the enclosing wall rocks.

Two surface drills are testing the strike potential of the 1060 zone, while two other rigs are evaluating the downdip continuity. At presstime, the zone had been defined along a strike length of 300 metres and a dip length of 600 metres. Drill-indicated reserves will be calculated once the current program is completed.

Hoyle Pond was acquired last September when Kinross bought the controlling interest in Falconbridge Gold from Falconbridge. At the end of 1993, reserves were 259,490 tonnes grading 15.1 grams gold to a depth of 200 metres. In other news, Kinross enjoyed a profit of $6.7 million (or 11 cents per share) in 1993, compared with a loss of $1.14 million (4 cents per share) in the previous year. Last year, production from its operations in the U.S., Canada and Zimbabwe totaled 83,476 oz. gold equivalent.

Also, capital expenditures of $13.8 million were recently approved for development of the Quesnel River gold project near Quesnel, B.C.