Central Crude considering deep drilling at Moss Lake

More diamond drilling is under consideration for the large-tonnage, low-grade Moss Lake gold deposit of Tandem Resources (ME) and Storimin Exploration (ASE) which is under option to Central Crude (TSE), The Northern Miner gathers.

The project is 70 miles west of Thunder Bay in northwestern Ontario. Central Crude, now under Hemlo Gold Mines’ (TSE) direct management and control, has already spent some $4.5 million on the Moss project while the Storimin-Tandem team has spent upwards of $8 million. This work has outlined a large-tonnage open pit deposit of 82 million tons grading 0.031 oz. per ton to a depth of 800 ft.

Within this tonnage is a higher-grade core which Central Crude and Hemlo Gold estimate to be 2.2 million tons grading 0.l8 oz.

With preliminary reserves of 2.5 million oz., the main zone itself remains open in all directions, with grade appearing to increase with depth. This is particularly so in its northern portion where the deepest hole intersected 120 ft. averaging 0.1 oz. at the 800-ft. horizon, Tandem’s President Stanley Hawkins reports.

Central Crude, which must come up with a further $62,500 payment to the vendors by year-end to either earn a 51% interest or forfeit the project, would like to test this theory with some deeper drilling.

To this end, management is considering a program consisting of at least four holes to depths of 1,500-2,000 ft.

If approved, this program would get started in late summer or early fall, says Walter Nash, Noranda’s (TSE) regional manager for west Precambrian. (Noranda is Hemlo Gold’s major shareholder.) It would cost at least $250,000, with funds probably advanced by Hemlo Gold, which has a 43% interest in Central Crude.