More drilling under way on Golden North claims

Following a successful $1.5-million spring program of drilling and development work, Golden North Resources is spending a further $617,000 to drill the Canty East target area of its Nickel Plate Mountain prospect near Hedley, B.C.

The earlier program, under the direction of Mascot Gold Mines, returned encouraging gold assays from the Mascot Fraction claim, which lies northeast of Mascot’s open pit, and the former producing Canty mine area (N.M., May 18/87). Ore reserves are currently being calculated.

An initial nine holes (4,500 ft) have now been spotted within the Canty East grid. The Canty East target is located about 1,500 ft east of the Canty mine deposit and covers a surface area of l,000 ft by l,500 ft. Favorable Nickel Plate geology, along with coincidental anomalous gold geochemistry, structure, magnetic highs and ip responses, outlined this target area, the company says.

Trenching and geophysical work on the Good Hope claim area is also in progress and several drill targets have been identified.

In addition, Mascot has done extensive surface drilling on the Horsefly Terrier claim, in which Golden North has a carried 20% net profits interest. This has indicated a significant extension to Mascot’s south pit ore reserve zone. An underground exploration drift will be commenced to further drill and develop these claims at depth.

Mascot recently increased its share position in Golden North to 26% when it purchased 1.4 million shares from Royex Mining Corp. In order for Royex to complete this transaction, it had to exercise an option to buy 250,000 shares at $2.25 per share to net Golden North $562,500. Golden North’s working capital now stands at $3.5 million.