Partners Altius Minerals (ALS-V) and Sudbury Contact Mines (SUD-T) report mixed results from the latest batch of holes on the Moosehead gold property in central Newfoundland.
The holes are the last of a 36-hole, 8,200-metres drilling program.
Drilling was highlighted by hole 23, which cut quartz veining at a depth of 14.2 metres. A 1.53-metre interval returned 170.31 grams gold per tonne, including 0.6 metre of 413.56 grams gold. The targeted the same mineralized structure cut by previously reported hole 13 (17.1 metres averaging 11 grams gold per tonne, including a 1.5-metre sub-interval running 97 grams), 130 metres to the southeast.
Aimed at locating the source of a large number of veins and vein breccia boulders not explained by any of the currently intersected mineralization, holes 24 through 31 yielded only strong alteration and broadly anomalous gold values. The texturally distinct boulders host locally higher concentrations of sulfosalt minerals and gold values up to 442 grams.
The final five holes, nos. 32 to 36, encountered a new mineralized structure about 200 metres northeast of the structure cut by holes 13 and 23. The best result came from hole 34, which cut 1.25 metres grading 8.67 grams gold and a 1.05-metre interval lower in the hole ran 7.11 grams. Narrow veins in the structure grade up to 28.6 grams. Mineralization and alteration appear to strengthen to the east. Altius believes the structure may represent the source of large, angular vein boulders that run up to 149 gram gold, some 100 metres down-ice.
Gold mineralization at Moosehead is hosted by Silurian-aged siltstone and sandstone that was intruded by quartz veins and vein breccia. Pyrite, sphalerite and sulfosalt minerals, as well as minor gold, are visible.
A 2002 drilling program aimed at delineating the newly discovered zones and locating others will follow construction of a three-dimensional model of the property.
Sudbury Contact, a subsidiary of Agnico-Eagle Mines (AGE-T), can earn a 51% stake in the Moosehead property by spending $800,000 on exploration over three years. Another 9% can be acquired by spending $1 million in the following two years. Sudbury Contact must also pay Altius $150,000 in cash.
The two recently staked 32 claims in the immediate area to expand the property to 22.5 sq. km.
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