Underground drilling is now in progress at the Central Zeballos gold property, a former gold producer located about five miles from Zeballos on Vancouver Island, B.C. The program is operated by Canalaska Resources (VSE), which is earning a 50% interest from New Impact Resources (VSE).
First worked in 1937, the mine produced 20,472 oz of gold from 41,655 tons of ore, all mined from the Central Zeballos Main vein, a quartz vein developed over a 900-ft vertical extent.
Based on previous engineering reports, the project has proven and probable reserves of about 10,000 tons at 0.44 oz gold per ton, but Canalaska said the continuity of the gold bearing vein indicates potential for developing more reserves both along strike and down dip. The underground program is targeted to test the vertical and lateral extension of the western ore shoot blocked on the No 5 level and will also test narrower veins paralleling the main vein to the north.
The company recently signed a letter of intent for a $300,000 flow- through financing with MVP Management.
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