Partners bouyed by Windfall results

Reconnaissance drilling by equal partners Freewest Resources (FWR-V) and Murgor Resources (MUG-V) has uncovered three gold zones on their Windfall property in northwestern Quebec.

Hole 2 cut 10.5 metres (from 90.5 metres below surface) grading 3.1 grams gold per tonne, including 3.5 metres averaging 8.3 grams gold. The hole targeted a surface occurrence that previously yielded a channel sample running 40.6 grams gold over 5.9 metres.

Hole 6 returned 17 metres (from 87 metres) grading 2.1 grams gold, including 4.7 metres of 5.1 grams gold. Hole 9 yielded 6 metres (from 150 metres) of 3.3 grams gold, including 3.5 metres of 4.5 grams.

The gold, including visible gold, is associated with strongly deformed and altered rhyolite and rhyolitic fragmental rocks with up to 25% disseminated, banded and stringer pyrite.

Each of the holes tested an induced-polarization anomaly ranging in lengths from 450 to 700 metres. In all, 11 holes were completed, for 2,038 metres; assay results from 207 samples for parts of drill holes 3, 8, 9 and 10 are still pending, as are results for all of hole 11.

A second drill will be added in order to test for depth and strike extensions.

The southern limit of the Windfall property sits about 200 metres north of a recent discovery by Noront Resources (not-v), which returned a 13.4-metre interval grading 8.6 grams gold.

Freewest has completed a private placement of 4.8 million flow-through units priced at 21 apiece in Quebec, Ontario, Manitoba and Alberta for gross proceeds of $999,555. A unit includes one share plus half a share purchase warrant, a full warrant being good for one share at 28 per share for 18 months. The shares and warrants are subject to a hold period expiring on April 30.

Freewest will use 85% of the proceeds to fund exploration on its properties in Ontario, Quebec and New Brunswick; the balance will be used for working capital.

Freewest now has 92.3 million shares issued and outstanding.

Likewise, Murgor’s share count has climbed to 56.2 million after two recently completed private placements. The first saw the company issue just more than 4 million flow-through units at 17 apiece. Each unit comprises one share and half a warrant; a full warrant allows the holder to buy one share for 22 per share until June 30, 2006.

A second deal saw 1.8 million units issued at a 15 per unit to accredited investors in Quebec, Ontario, Alberta and British Columbia. Each of those units consists of one share and one warrant. A warrant allows the holder to buy one share for 20 per share until June 30, 2006.

All the notes are subject to a hold period, which expires May 1, 2005. In all, the company raised $956,759 in gross proceeds.

Proceeds from the flow-through issue will be used to explore the Windfall, Eagle River and Barry properties in Quebec, and the Mystery, Mystery North and Mishibishu properties in Ontario. Proceeds from the issuance of the regular units will be applied to working capital.

In other news, Murgor has appointed Gilles Lanthier as vice-president of exploration.

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