Danra to start drilling program

A drill contract has been let by newly-listed Danra Resources (VSE) for a 6-hole program on a promising silver property in the Yukon.

The 600-m program, scheduled to start early next month, will test the down-dip extension of a near- vertical alteration zone, 10 to 30 m wide containing significant silver values as high as 22.8 oz per tonne over 2.03 m at a depth of about 75 m.

The zone was intersected by 10 drill holes put down in 1984 by Noranda Exploration (Norex), the holder of the property. Those holes outlined a mineral inventory of 50,000 tonnes grading 13 oz silver per tonne.

Silver grades appear to increase with depth, a trend the Danra program will test.

Danra has an agreement with Norex to earn a 50% interest in the property but Norex would also retain a 10% net profits royalty, according to that agreement.

The property is located about 20 km from the end of the Clear Creek Road, 100 km southeast of Dawson City, Yukon.

Danra also has a grassroots gold property in the Hemlo area of northern Ontario and another good silver bet in the Colbalt camp in that province. The silver property is tied on to the northern boundary of the Kelley-Frontier property, the largest former silver producer (19 million oz from 1908-1965) in the camp.

Danra is negotiating flow- through financing to fund a drilling program on both the gold and the Cobalt properties.

The company’s initial underwriting, completed by Continental Carlisle Douglas of Vancouver, consisted of 500,000 shares at 50 cents , netting the company $212,000. Danra shares traded this week at about 70 cents .