Redell drills Yukon property

Vancouver-based junior Redell Mining (VSE) is pleased with results of a summer drill program on the Mt. Freegold property, 30 miles northwest of Carmacks, Y.T.

The program tested the potential of the main G3 vein system at the gold mine known as La Forma.

Hole 94-17, drilled in the South zone, confirmed the existence of high-grade lenses within the proposed open-pit area by intersecting 34.5 ft. of 1.39 oz. gold per ton. Previous underground work below this hole returned 25 ft. of 1.56 oz.

The project lies within the Dawson porphyry belt, where gold was first discovered in 1930. La Forma operated from 1965 to 1966 as a low-tonnage gold mine. In 1987, an adit was partially driven to reach an enriched gold system but was terminated when funds dried up.

Twenty-three holes were drilled eastward at angles of 50-55 in the South and North zones of the G3 vein system, at 50-ft. spacings. The zones are each 300 ft. in length along strike and are separated by 200 ft. of what was once regarded as dead ground. However, recent trenching between the zones has returned 14.5 ft. of 0.096 oz. gold and 25 ft. of 0.07 oz.

The G3 system is a complex shear zone. It is 10-50 ft. wide, dips steeply to the west over a strike length of 800 ft. and contains several subparallel vein systems. It remains open at depth below the 800-ft. level. Drilling in the South zone encountered not only hole 94-17 but the following significant intersections as well: 45 ft. of 0.23 oz. in hole 94-6; 23 ft. of 0.24 oz. in 94-9; and 32 ft. of 0.23 oz. in 94-10.

Significant results from the North zone include: 14 ft. of 0.09 oz. for 94-11; 27.5 ft. of 0.043 oz. for 94-16; and 24 ft. of 0.028 oz. for 94-13. A bulk heap-leach test of 100,000 tons from a starter open pit in the South zone is expected to begin in June, 1995, and development through to 1997 has been proposed.

La Forma, combined with the newly acquired ANT claims and the Antoniuk deposit (estimated at 3.9 million tons grading 0.038 oz. gold), comprises 7,500 acres on Mt. Freegold. The total land package hosts 15 known zones. Trenching on a large oxidized zone, 400 ft. west of G3, returned 1.16 oz. over 3 ft.

Redell has 4.5 million shares outstanding and plans to raise $500,000.

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