EXPLORATION ROUNDUP — McWatters extends vein at Sigma mine

Drilling by McWatters Mining (MCW-T) at its Sigma gold mine in Val d’Or, Que., has confirmed a 580-metre vertical extension of vein 46.

Hole 17112, drilled from level 37 at a depth of 1,580 metres, intersected 11.8 metres (9.1 true-width metres) grading 6.61 grams gold per tonne, including 8.2 metres (6.3 true metres) of 9.03 grams gold.

Level 37 is 480 metres below the workings of the former Lamaque gold mine and 346 metres below the Sigma mine’s level 30, where vein 46 is currently accessible.

Mining of vein 46, using longhole-stoping methods, is scheduled to begin early next year.

Vein 46 has been delineated over a length of 500 metres and has an average thickness of 3 to 10 metres. Proven and probable reserves in the vein stand at 248,000 tonnes grading 5.35 grams gold, with further resources of 2.1 million tonnes of 4.04 grams gold for total resources of 279,600 contained ounces.

McWatters plans to spend $1.2 million this year and $5.8 million in 1998 on development and drilling at Sigma.

In other news, McWatters completed the sale of 538,035 units relating to the exercise of an over-allotment option granted to several brokerage houses for net proceeds of $960,000. The over-allotment option was granted in connection with an $80-million pubic offering of McWatters shares, units and notes that closed this past September.