River hits bonanza grades

Underground drilling at the Eagle River gold mine, near Wawa, Ont., has returned spectacular results for River Gold Mines (RIV-T).

Eleven holes drilled to test mineralization below the No. 6 zone intersected from 1.3 to 10.8 metres (true width) grading between 4.34 and 72.73 grams gold per tonne, or 638.82 grams uncut. All hit their mark between 375 and 450 metres below surface, outlining mineralization over a strike length of 150 metres. Multiple parallel zones were noted in some holes as well.

Highlights include:

• hole 30-1, which intersected 10.8 metres averaging 8.42 grams, including 2.4 metres grading 31.53 grams and 1.4 metres grading 11.45 grams;
• hole 2, which cut 8.8 metres averaging 21.56 grams, including 1.8 metres (true width) of 72.73 grams and 1.6 metres of 38.63 grams;
• hole 4, which returned 28.49 grams over 2.5 metres; and
• hole 20-442, which returned 34.12 grams gold over 1.3 metres and 12.61 grams over 4.7 metres.

Assays greater than 140 grams were cut back to that grade to alleviate the nugget effect. Furthermore, the subintervals in both holes 1 and 2 occur at the borders of the larger interval and constitute most of its grade.

Mineralization maintains the easterly strike direction of the No. 6 zone, as well as its vertical dip. It remains open to the west and at depth.

Since production began in late-1995, Eagle River has produced 225,000 oz. gold from 625,000 tonnes grading 11.2 grams gold. At the end of 1998, reserves stood at 1.28 million tonnes grading 10.44 grams, though the new zone is expected to maintain reserves, as all production to date from the No. 6 zone has come from above the 220-metre level. (Development has now reached the 300-metre level.)

An additional benefit is the zone’s proximity to a proposed shaft, development for which is set to begin this summer. The shaft, which initially will be sunk to 740 metres and have an exploration level branch off at 640 metres, will faciliate rapid delineation and development of the zone.

Aside from Eagle River, River Gold periodically mines the Edwards orebody of Vencan Gold (VCG-M) in return for half of that project’s profits. The company also owns the nearby Mishi open-pit deposit, which is 2 km from its central milling complex and scheduled to enter production sometime this year. Reserves there stand at 500,000 tonnes grading 3.1 grams of gold.

In related news, River Gold has agreed to mine and mill up to 12,000 tonnes from the nearby Wawa property of Pele Mountain Resources (PELE-C). That property is east of Edwards and west of the past-producing Renabie gold mine, where historical production surpassed 1 million oz.

The deal calls for River Gold to mine and treat the sample by year-end, covering all associated costs and paying Pele $10 per tonne treated, of which $60,000 already has been advanced as a non-refundable deposit. In return, it pockets any revenue arising from the test.

The A zone is associated with a silicified, easterly striking shear zone that has been traced for 5.6 km across the property. Surface channel sampling along 55 metres of that strike (the zone is cutoff to the east by a lake) and across a width of 1.4 metres averaged 14.6 grams gold. Previous drilling, results for which are unavailable, intersected the zone down to 255 metres in vertical depth, along which it increases in length and width.