Lively intersection by San Paulo at Leitch mine

A discovery that could well prove important has been made by San Paulo Explorations in an exploratory drill hole in a program it has recently started on the Leitch mine property at Beardmore in northwestern Ontario. This is under a joint venture agreement with Teck Corp. which requires San Paulo to spend $3 million to earn a 50% interest in this rich former producer. .TGold mineralization has been picked up in all holes to date, San Paulo President Peter Walker tells The Northern Miner. Hole No 5, the latest, looks especially promising he says. This has intersected a strong-looking quartz-carbonate structure over an ore length of 8.3 ft from 1,069.3-1,077.6 ft. Four core samples taken across this structure assayed as follows: 2.0 ft of 0.305 oz, 2.9 ft of 0.010 oz, 1.3 ft of 0.050 oz and 2.l ft of 5.200 oz.

This is a new vein that appears to parallel the No 16 vein which forms the main target of the current program. It is similar in grade and width to the original Leitch vein from which 920,749 tons of ore were mined over a continuous 30-year period, producing 847,291 oz gold for an average grade of 0.92 oz recovered per ton — the highest in Canada.

San Paulo recently entered into a second project with Teck on another gold property in the Lower Manitou Lake area south of Dryden, Ont., (N.M., Dec 14/87). Also, San Paulo recently optioned one of its two properties in Ontario’s Mishibishu area to Noranda Exploration.