Reconnaissance drilling by equal partners Freewest Resources (FWR-V) and Murgor Resources (MUG -V) has uncovered three new gold zones on their Windfall property in northwestern Quebec.
Hole no. 2 cut 10.5 metres (from 90.5 metres below surface) grading 3.1 grams gold per tonne, including 3.5 metres averaging 8.3 grams gold. The hole targeted a surface occurrence that previously yielded a channel sample running 40.6 grams gold over 5.9 metres.
Hole no. 6 returned 17 metres (from 87 m) containing 2.1 grams gold, including 4.7 metres of 5.1 grams gold. Hole no. 9 yielded 6 metres (from 150 m) of 3.3 grams gold, including 3.5 metres of 4.5 grams.
The gold, including visible gold, is associated with strongly deformed and altered rhyolite and rhyolitic fragmental rocks with up to 25% disseminated, banded and stringer pyrite.
Each of the holes tested an induced polarization anomaly ranging in lengths from 450 metres to 700 metres. In all, 11 holes were completed for 2,038 metres; assay results for 207 samples for parts of drill holes 3, 8, 9 and 10, and all of hole 11 are still pending.
The partners plan to add a second drill rig to further test for depth and strike extensions later this month.
The south limit of the Windfall property sits about 200 metres north of Noront Resources (NOT-T) recent discovery that returned a 13.4-metre interval running 8.6 grams gold.
On the financial front, Freewest recently privately placed nearly 4.8 million flow-through units at 21 apiece in Quebec, Ontario, Manitoba and Alberta for gross proceeds of $999,555. Each unit includes one share plus half a share purchase warrant, with a full warrant good for one share at 28 per share for 18 months. The shares and warrants are subject to a hold period expiring on April 30.
Freewest will use 85% of the proceeds to fund exploration on its properties in Ontario, Quebec and New Brunswick; the balance will go toward working capital and general corporate purposes.
Freewest now has some 92.3 million shares issued and outstanding.
Likewise, Murgor’s share count has climbed to around 56.2 million after two recently completed private placements. The first saw the company issue just more than 4 million flow-through units at 17 apiece. Each unit comprises one share and half a warrant; a full warrant allows the holder to buy one share for 22 per share until June 30, 2006. Each unit
A second deal saw 1.8 million units issued at a 15 per unit to accredited investors in Quebec, Ontario, Alberta and British Columbia. Each of those units comprises one share and one warrant. Each warrant allows the holder to buy one share for 20 per share until June 30, 2006.
All of the notes are subject to a hold period expiring on May 1, 2005. In all the company raised gross proceeds of $956,759.
Proceeds from the flow-through issue will go toward exploration on the Windfall, Eagle River and Barry properties in Quebec, and Mystery, Mystery North and Mishibishu properties in Ontario. Proceeds from the issuance of the regular units will be applied toward working capital and general corporate purposes.
In the boardroom, Murgor has appointed Gilles Lanthier as Vice-President of Exploration.
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