Drilling on the Gibbs property in Mariposa Cty., Calif., continues to return spectacular gold values, including a 76-ft. intersection grading 2.01 oz. gold per ton.
But the stock price of Dessir Resources (VSE), which is earning a 50% interest in the property, has been falling for the past three weeks after taking a strong run up in September. The share price was $1.25 in mid-August, rose to more than $3 in late September and currently traded in the $2.50 range.
The company is drilling off a pod-like structure which lies up-slope from the old Gibbs mine. The pod has a diameter of about 400 ft., pinching out on all sides and is estimated to range up to 150 ft. in thickness.
The three recent holes were drilled on a line about 100 ft. up-slope from the previous line (holes SA91-06 to 08).
A fourth line of holes drilled a further 100 ft. up-slope is reported to have intersected mineralized vein material over widths ranging from 117 ft. to 147 ft., although assays have not been completed.
Dessir is earning its interest in the property from A.T. & E. Mining by spending a total of US$1.4 million by Nov. 18. Dessir must also issue A.T. & E. three million treasury shares to become fully vested. The shares are expected to be free trading, bringing the company’s issued capital up to about 7.5 million shares.
Barry Whelan, a consultant for Dessir, said the company will calculate a preliminary reserve estimate after all the assay results are in. He expects drilling to continue shortly with the core rig as well as a reverse circulation rig in order to bring reserves into a proven category as well as continue stepout drilling up the hill to search for additional mineralization. Results from recent drilling are:
Hole Interval Width Gold
(ft.) (ft.) (oz./ton)
09 16-40 24 3.54
150-226 76 2.01
11 35-72 37 1.96
100-130 30 1.34
12 40-55 15 1.41
61-77 16 1.35
104-109 5 1.62
112-144 32 1.35
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