Drilling extends Goose Lake

The first batch of results from this year’s drilling by Kinross Gold (K-T) on Wheaton River Minerals‘ (WRM-T) Goose Lake gold deposit in Nunavut has extended mineralization both updip and downdip. It has also contributed significantly to the high-grade open-pit potential of the property.

The latest holes are part of a 9,000-metre drill program planned for 2001. The aim is to outline between 2.5 million oz. and 3 million oz. grading 13 grams. Kinross says those are the minimum resources required to overcome the high costs of operating in the region.

So far, Kinross has sunk 33 holes. Assay results for most are pending.

Twelve holes were collared on the South Extension, which was discovered last year. Initial results confirm that South is actually part of the Main zone. Highlights from the drilling include:

• Hole 57 — 5.6 metres (approximating true width) grading 10.6 grams gold per tonne (from 27.8 metres below surface);
• Hole 59 — 7 metres grading 38.6 grams gold (from 68 metres);
• Hole 60 — 13.8 metres grading 13.8 grams gold (from 304.5 metres);
• Hole 62 — 18.6 metres grading 48.9 grams gold (from 93.4 metres);
• Hole 65 — 17.5 metes grading 11.8 grams gold (from 6.6 metres); and
• Hole 67 — 14.6 metres grading 11.8 grams gold (from 82.5 metres).

Previous drilling on the zone cut 17 metres grading 14.9 grams, 9.3 metres grading 13.5 grams and 3 metres grading 10.8 grams.

With the latest holes in hand, the strike length of the Main zone at Goose Lake has been extended to 600 metres. Its depth has been confirmed to more than 300 metres. Mineralization occurs in several parallel zones surrounding a newly discovered fold nose and is closely related to quartz veins in iron formation. Most of the recent holes were drilled updip and to the east of previous holes.

The remaining 21 holes were drilled to test a number of outlying targets. So far, the results have returned no significant mineralization.

Kinross plans at least 3,200 metres of additional drilling this summer. The company can earn a 70% interest in the properties from Wheaton by spending $20 million by Nov. 30, 2004. Excluding the current program, Kinross has already spent about $3 million.

At the end of last year’s drilling, the Goose Lake deposit’s inferred gold resource was more than doubled to 3.9 million tonnes grading 12.51 grams gold per tonne. This estimate was based on 9,700 metres of drilling. The deposit remains open to the south and at depth.

Goose Lake is the largest of six deposits at the George Lake gold project. The five other deposits have an indicated resource of 2.6 million tonnes grading 9.95 grams gold. Their combined inferred resource stands at 1.3 million tonnes grading 10.11 grams gold.