Bitech annouces discovery on coast of Newfoundland

Toronto-based Bitech Energy Resources (ASE) has announced what it believes is a significant gold discovery in the Betts Cove area on Newfoundland’s Baie Verte Peninsula.

The discovery was made during a $200,000 exploration program which followed recent high grade geochemical soil sampling. Gold nuggets and fine gold flecks were recovered during soil panning on the 64-claim property which is adjacent to the old Betts Cove copper mine, said Bitech President James Wade.

According to Wade, follow up trenching uncovered a 23-ft wide gossan zone. “A soil sample assayed 0.44 oz gold per ton while grab samples from a trench across the zone assayed 0.12, 1.29 and 2.5 oz gold per ton,” he said.

Additional channel sampling in the trench returned 0.45 oz gold over 23 ft. The mineralization consists of disseminated pyrite in a siliceous band associated with sedimentary rocks at the top of a pillow lava sequence.

The favourable horizon which has an apparent strike length of approximately 2,000 ft, coincides with airborne magnetic, VLF EM16 and soil geochemical anomalies. The host sequence is defined on the footwall but is open on the hanging wall.

“We’ve got a lot more work to do to figure out what we have got here,” Wade told The Northern Miner. In a bid to pursue a discovery which caused a flurry of activity on the Alberta Stock Exchange, a continuing program of trenching, sampling, mapping and geophysics is already underway.

With over 377,000 Bitech shares changing hands, the issue climbed from 19 cents yesterday to 55 cents recently. At press time it was ranging at around 40 cents .

A follow up program of diamond drilling is also being prepared and will be conducted once the present program is completed and results compiled. “We are in the process of adjusting our budget for this area and there is no question that we are going to drill,” said Wade.