Lamaque drilling cuts gold

Drilling by Kalahari Resources (kla-v) at its Lamaque project in northwestern Quebec has returned more gold intersections. The company tested two magnetic anomalies, T-06 and T-03, on the property. At T-06, east of the former-producing Lamaque mine’s “Main Plug” intrusion, a single drill hole intersected three zones of gold mineralization.

In the the first zone, at a vertical depth of about 88 metres, crews intersected 2.1 metres grading 6.4 grams gold per tonne. Drilling in the second zone, immediately below the first, returned an average grade of 10.1 grams gold per tonne over a 1.4-metre intersection. Another zone, drilled at a vertical depth of 185 metres, returned a 1.5-metre interval of 8.9 grams gold per tonne.

At magnetic anomaly T-03, about half a kilometre southwest of T-06, another hole intersected 1.7 metres grading 7.7 grams gold.

The company has closed a private placement of 2 million units priced at 25 apiece, each unit consisting of a share and a purchase warrant expiring at the end of January 2007. The warrants are exercisable for 30 until Jan. 28, 2005, with the exercise price rising by 5 in each succeeding year until expiry.