Latest Paymaster results mixed

The latest underground drilling at the Paymaster gold project near Timmins, Ont., has returned mixed results for partners American Reserve Mining (ME) and Placer Dome (TSE). Hole 6035 hit a short mineralized interval in zone 36, returning 5 ft. of 0.54 oz. gold per ton at 710 ft. below the 6,025-ft. level. Five narrow zones within the No. 37 zone returned uneconomic values. But 285 ft. below the 6,025-ft. level, Placer hit a 100-ft. interval grading 0.18 oz. gold (cut) in zone 37. Directly below hole 6032 at vertical depth of 607 ft., hole 6037 intersected a 71-ft. interval grading 0.12 oz. in zone 37. The drill station is about 600 ft. northeast of the crosscut that returned 96 ft. grading 0.31 oz. Zones 36 and 37 dip north and appear to be plunging to the east. The partners are about to complete the 10,000-ft. exploration program from the 6,025-ft. level of the old mine. Results from seven holes reported to date include: Homestake Canada, a subsidiary of Homestake Mining (NYSE), recently reached an agreement which will give it an additional 18% stake in American Reserve. In exchange for Homestake’s 20% interest in the Kutcho Creek property in northwestern British Columbia, the Vancouver junior has agreed to deliver a total of 2,499,550 of its shares to Homestake. Homestake already holds 870,000 common shares and 6.5 million preferred shares of American Reserve. Hole Interval Length* Gold (ft.) (ft.) opt opt(cut) 6031 282.0-379.5 97.5 0.29 0.26 6032 289.9-324.6 34.7 0.50 0.26 6033 339.5-352.0 12.5 0.19 0.19 6034 384.0-446.8 62.8 0.21 0.21 476.7-510.7 34.0 0.36 0.33 604.0-620.0 16.0 0.32 0.32 6036 283.0-383.0 100.0 0.19 0.18 6037 339.5-410.5 71.0 0.15 0.12 635.0-647.5 12.5 0.31 0.31 *In all cases, true width is at least 75% of core length.