Wye Resources (CDN) plans to begin a 5-hole program on its Saganaga Lake gold property, 75 miles southwest of Thunder Bay, Ont., as soon as the snow melts. Saganaga Lake, which straddles the Ontario-Minnesota border, is a joint venture between Wye (60%) and Curran Bay Resources (ASE).
The junior explorers will test a new exploration model on the property, where previous work focused solely on mineralized quartz veins. Results from a 1988 drill program include a 19.3-ft. length grading 0.96 oz. gold per ton at a depth of about 30 ft.
Recent re-evaluation suggests the metavolcanic package that hosts the gold-bearing veins also carries encouraging gold values. Mineralization outlined to date is shallow, extending to no more than 131 ft. from surface.
About 20 miles northeast in Moss Twp., Central Crude is conducting exploration on a similar premise. There, a 2-million-ton high-grade core is surrounded by a lower-grade (0.031 oz. gold per ton) reserve of over 80 million tons.
Wye President Jim Myslicki is so confident about Saganaga’s potential, he is risking his own money to finance the first phase of drilling. After the initial holes are complete, he hopes to raise at least $120,000 for a follow-up program.
Last year, Homestake Mineral Development, a unit of Homestake Mining (NYSE), dropped its option on the property after discovering a 1,640-ft. gold-bearing horizon near the north shore of Saganaga Lake.
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