Argus to move drilling rig after poor Esker Lake result

If a flurry of market activity can be construed as an indication of success, Alberta-listed Argus Resources seems to be on to something at its Esker Lake gold property east of Contwoyto Lake in the Northwest Territories.

Over 1.2 million shares of the Argus issue changed hands recently on the Alberta Stock Exchange as news leaked out that the company has encountered “Lupin-style” sulphides at the 200,000-acre property.

The share price rose 60 cents to close at $1.40 in March 2 trading.

Located about 150 km southeast of Echo Bay’s Lupin mine which produced 193,185 oz gold in 1986, the Esker Lake property is currently being explored in a joint venture with Tandem Resources of Toronto.

As reported (N.M., Feb 22/88), Argus discovered a new sulphide zone with values ranging from 1.9 oz gold per ton across 4 ft during last year’s surface exploration program.

Argus holds a 50% interest while Sirius Energy Corp., a private company managed by Argus’ directors and officers, holds the remaining 50%.

After spending $330,000 on a drill program, Tandem can convert its expenses into Argus stock at 75 cents per share.

Since assay results from an initial drill hole are not yet available, corporate secretary Theresia Reisch said Argus did not intend to go public with the Esker Lake results.

But after the issue posted a .50 cents gain, the company was told by the Alberta Stock Exchange to draw up a press release on March 1.

Argus says diamond drill hole No 1 which was designed to test a conductive structure within an amphibolite unit intersected a 46-ft sulphide-rich zone.

Core samples from this sulphide zone are currently being re-assayed, says Argus President Michael Duggan. He says 2,000 ft of drilling in five holes recently tested the conductive zone along a strike length of 1,800 ft to the east.

Samples from these drill holes are in transit to the lab and results will be released as they become available, the company says.

Meanwhile, Argus is moving the rig to a new location in a bid to test the mineralized structure immediately below and to the west of surface pits which contained high gold values of up to 1.97 oz gold per ton.