Trader Res. encouraged by Ronnoco gold bet results

Under an agreement with Broulan Resources (TSE) and Ronnoco, Trader is spending $400,000 to drill a mineralized porphyry structure which has been tested before by a number of companies, including Pamour Inc.

“Our understanding is that no one was willing to stick with the property for any length of time,” said Trader Vice-president David Bell who claims to be “somewhat encouraged” by the latest results.

They include a 116-ft intersection which assayed 0.107 oz gold per ton over a true width of 66.5 ft. Trader also pulled 30 ft of grade 0.227 oz while drilling the Nighthawk Lake structure which is being tested over a length of 1,500 ft and down to about 300 ft.

From earlier drill data, it wasn’t clear to Bell whether poor recoveries reported by previous operators were due to bad ground conditions or drilling techniques. After testing some of the same areas, Bell said ground conditions are fine and that gold mineralization appears uniform in nature.

Trader has signed a one-year option with Broulan and a private estate to purchase their 74% stake in Ronnoco. Bell estimates it will cost his company about $2 million to exercise the option.

Back in 1946 a 130-ft intersection averaging 0.1 oz was encountered at a depth of around 800 ft. “We will put a couple of deep holes in that area to give us a better feeling for what is there,” he said.

Meanwhile, Bell said the current program (scheduled to be completed in March) could be expanded by about $100,000 to take advantage of freezing conditions. He hopes to outline between one million and 1.5 million tons of grade 0.07 oz.

Here are some of the highlights from the results just released from the Ronnoco property: DDH True No. Length Oz gold/ton Width 89-42 93 ft 0.067 oz 52 ft 89-43 61 ft 0.070 oz 50 ft 89-44 30.2 ft 0.227 oz 17 ft

59.4 ft 0.144 oz 34 ft 89-45 65.5 ft 0.066 oz 54 ft 89-46 54.5 ft 0.050 oz 31.3 ft 89-47 101.0 ft 0.064 oz 82.3 ft 89-48 116.0 ft 0.107 oz 66.5 ft

The Trader Resource issue gained 10 cents this week on the Toronto Stock Exchange. It is trading at around 41 cents in a 52-week range of 58 cents and 10 cents .

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