Major company Placer Dome (TSE) plans to fund a $200,000 exploration program this year on the Isle Aux Morts River gold property held by Fortune Bay Resources (VSE) in southwestern Newfoundland.
The property, accessible by road, is about 20 miles from Port Aux Basques. Placer has the right to earn a 60% interest by paying $325,000 and spending $2.4 million on exploration over four years.
Fortune Bay will operate the program which includes trenching and 3,500 ft. of diamond drilling. The key objective will be to test the depth potential of the primary target, a vertically dipping mineralized zone which varies from 35 to 40 ft. wide (true thickness). The vein zone consists primarily of quartz mineralized with varying amounts of pyrite, chalcopyrite and galena, and lesser amounts of other sulphides.
The vein zone was cut by three drill holes in 1990, with the better results including 25.4 ft. (true width) grading 0.28 oz. gold and 24 ft. grading 0.18 oz. gold per ton.
The company said the vein appears to be a mesothermal type that should carry to depth, and this theory will be tested during the forthcoming drill program.
“There’s nothing quite like it in Newfoundland,” Fortune Bay President Bill McWilliam told The Northern Miner, adding that in his view, Placer’s interest in the project should be justified if the mineralized zone was indeed found to have depth potential.
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