Another busy year for San Paulo with three drills now at work

With further financing firmed and three separate gold exploration deals in place, all with with major companies, the current year should be another active and interesting one for San Paulo Explorations, President Peter D. Walker told shareholders at the company’s annual meeting. Three diamond drills are already at work on these projects.

One of its main undertakings will continue to center on the large Leitch mine property at Beardmore in northwestern Ontario which it holds under option from Teck Corp. Under the terms of that agreement San Paulo must provide $3 million for exploration purposes over a 3 year period to earn a 50% interest, with Teck the operator.

During the past year (to February end) Teck carried out extensive aerial and ground geophysical surveys, together with line cutting over that entire property and a boundary survey. Just over 30,000 ft of diamond drilling was carried out in 36 holes, as well as 119 reverse circulation holes. This work turned up “some pretty good results” Rick Rutledge, Teck’s senior geologist told the meeting. Most of this drilling was concentrated on what is known as the No 16 vein, encountering a number of good grade but narrow intersections. There are a number of interesting looking anomalies yet to be tested in this continuing program.

Two drills have just been despatched to the Dryden area for a follow-up program on Teck’s 4l- claim Gaffney property at Lower Manitou Lake. San Paulo must spend $1 million here to earn a 50% interest, of which $275,000 is a firm commitment.

Limited previous drilling here by Teck indicated some 120,000 tons grading 0.19 oz gold, with the deepest hole intersecting 30 ft running 0.15 oz at a vertical depth of 600 ft. Another hole 67 ft of 0.16 oz. It is hoped that 6,000-9,000 ft of new drilling can be completed before the ice gives out, Rutledge said.

San Paulo also has two properties in the bustling Mishibishu Lake area 45 miles south of the big Hemlo gold camp, one of which (at Augusta Lake) has been optioned to Noranda Exploration. That company, which now has an extensive spread there, can earn a 60% in this San Paulo group by spending $1,785,000 on exploration and paying the company $130,000 over three years.

Directors were all re-elected.