Hudson Bay disappointed At Metalore’s Brookbank

Deep drilling completed by Hudson Bay Gold has produced disappointing results from Metalore Resources’ Brookbank gold property near Beardmore, Ont. Ontex Resources holds a 10% net profits royalty on the claims.

In a progress report completed by Hudson Bay, the company says that “in general, the deep drilling was very disappointing and, at the moment, limits the potential tonnage to a maximum of about 750,000 tons.” Although fill-in holes completed by the company cut economic grade gold mineralization which confirmed the original Metalore discovery holes, tests for the downward projection of the deposit assayed “very low gold values,” Hudson Bay reports. Wedged holes from three of Metalore’s discovery holes yielded 12.3 ft grading 0.15 oz gold per ton, 20.3 ft grading 0.43 oz and 27.3 ft assaying 0.4 oz, Hudson Bay says.

A second-phase drill program was completed this summer which tested for additional reserves along strike between the 500-ft and 1,400-ft levels of the zone. Based on visual examination of the core, the company feels that marginal gold values are indicated in three holes on the eastern extension.

Encouragement is expected from three holes drilled to test sections at 500 ft. These, Hudson Bay concludes, “indicate significant values will be present.”

Hudson Bay has the right to earn a 100% interest in the property after completing an 1,800-ft shaft-sinking and underground exploration program. However, the work has been stalled by a court suit launched by Ontex requesting the return of the property. Metalore, which trades on the Toronto Stock Exchange recently soared to a new high of $52 following news of encouraging results from an adjacent property which is not part of the Hudson Bay option (N.M., Aug.31/87). During the past several days, the issue has dipped back to $40.