Glitter Gold to bulk test Rea Gold’s Discovery zone/ LDql/

Bulk sampling, metallurgical and milling tests are slated for Rea Gold Corp’s Discovery zone in the Adam’s Lake area of B.C.

Under an agreement with Rea, Vancouver-listed Glitter Gold Mines has been given the right to carry out the work. Under the terms of the agreement, the work will be co-ordinated by means of a management committee and is to be completed before March 31.

About one-third of the 1,000-ton bulk sample will be obtained from the 100 Lens and about two-thirds will come from the 97 Lens. The sample will be shipped to Danko Mines’ facilities at Keremeos, B.C. The costs to obt ain the sample and to carry out the work are estimated at approximately $162,000, of which $30,000 will be spent on metallurgical and other tests.

The Discovery zone contains 267,720 tons averaging 0.19 oz gold, 2.14 oz silver, 2.149% lead, 2.247% zinc and 0.527% copper per ton based on a 1986 report by Sentinel Management Corp.

Glitter Gold will also have the right to bring the property into production at rates up to approximately 200 tons per day. Profits from such an operation will be shared with 65% to Glitter and 35% to Rea until all costs have been repaid. After that, further profits will be split on a 50/50 basis between the companies.

In other company news, Rea plans to increase the proposed drilling program to 21,000 ft from 5,000 ft on its CK Claims property near Clearwater, B.C.

Metallurgical testing and feasibility studies are also planned on the property where drill indicated reserves are estimated to be 1.6 million tons averaging 8.6% zinc, 1.4% lead and 0.255 oz silver per ton.

The deposit is open downdip and along strike, says the company, with reserves contained in a one kilometre strike length to a depth of 62 metres. The drill program is designed to define the known geologic reserves and delineate the inferred mineralization on-strike and downdip.

The funds for the program result from an agreement reached between Rea and NIM and Co. Limited Partnership — 1987. Under the terms, Rea Gold will incur qualified expenditures before Dec 31 of this year up to a total of $400,000.

Rea trades on the TSE and VSE.