FGM to test gold showings at Conquest’s Renabie bet

First General Mine Management & Gold Corp. of Toronto has entered a contract for a minimum of 5,000 ft of diamond drilling on its Renabie, Ont., area property optioned from Conquest Yellowknife Resources.

First General says a $200,000 drill program financed by a recent flow- through issue has already started.

It will test the gold showings and structural targets identified by the company’s program of mapping, stripping and sampling completed during the summer of 1987.

According to First General, the sampling program revealed fewer high grade gold assay results than anticipated but anomalous gold values are widespread in the new exposures.

Several structural targets in zones of intense alteration associated with the anomalous gold values have been identified and will be tested by the diamond drill program, First General says.

While closing a $150,000 financing from Q-Vest Management II Inc., First General issued some 290,000 shares. The proceeds were spent on the 1987 summer program.

However First General says a $250,000 flow-through financing with Excan Mineral Exploration and Co. Ltd., will not be completed as the partnership was unable to close its funding following the stock market upheavals of late 1987.

According to First General, those funds had been earmarked for a “farm-in” exploration program in Newfoundland which has been deferred for now.

Through spending $500,000 on the Conquest Yellowknife properties by February, First General will have completed the second phase of its option and earn a 25% interest in the properties.