McAdam confirms three zones at McWatters gold property

Having survived the recent stock market debacle with its share price relatively intact, McAdam Resources of Toronto recently released an update on its exploration properties.

At press time, the McAdam issue was trading on the Toronto Stock Exchange at $1.50 in a 52-week range of $3.75 and 80 cents .

President John McAdam says he’s encouraged by exploration at the McWatters gold project near Rouyn, Que. where attention is focused on a new discovery area 1,200 ft northwest of the shaft.

Reserves at McWatters currently stand at 431,575 tons grading 0.193 oz gold per ton. According to McAdam, three new zones, the J, K, and L have been established and the best results include 19.5 ft averaging 0.30 oz on the J zone, 25.4 ft averaging 1.05 oz in the K zone and 10 ft of 0.79 on the L zone.

“Pattern drilling continues in the discovery area where McAdam has given prority to defining gold reserves above the 400 ft level,” he said.

McAdam says his company is also planning to drive a cross-cut north on the 400 level from the existing workings. “This work is just underway and should attain the J, K, and L zones near the end of this year,” said McAdam.

As workings are driven in each zone to confirm drilling results, cross-cutting will pass through some unexplored ground with high potential. Exploration Drift

McAdam is also planning to drive an exploration drift east of the existing workings on the 400 level. According to McAdam, the drift will pass through what he called “very good exploration ground” en route to the 702 zone which recently yielded 8.5 ft of 1.0 oz.

Next month McAdam said an underground hoist will be installed on the 400 ft level and dewatering will be continued down to 1,200 ft.

Out in British Columbia, McAdam’s Spud Valley property is currently in an underground mode with a heading being pushed north from the existing No. 7 level. According to McAdam, his company is planning to intersect the four zones discovered by drilling north and east of the former mine.

By Christmas 1987, we expect to have crossed each of the A, Linton, Linton North and A.T. veins,” said McAdam.

Immediately following that, workings will be driven on each vein to help confirm recent drill results. The Linton North vein where drilling intersected 4.2 ft of 3.5 oz, is expected to receive special attention.

With about one-third of the current project complete, preliminary reserves at Spud Valley now stand at 429,000 tons grading 0.25 oz.