Gunnar, Mill City are encouraged by first results dw

Reporting encouraging gold values from two of the first three holes assayed from an 11,000-ft drilling program at the joint-venture Tyranite mine property near the northern Ontario town of Gowganda are Gunnar Gold and Mill City Gold.

The drilling is part of an agreement whereby Gunnar and Mill City may earn a combined 50% interest in Tyranex Gold’s option to purchase the 12-claim property by spending up to $5 million on exploration, development and feasibility studies by August, 1990.

Hole No 2001-01 returned 0.15 oz gold per ton over 10 ft, including 0.24 oz over 5 ft, while hole No 2001-03 cut 0.05 oz over 9 ft and 0.07 oz over 40 ft.

Preliminary results from drill holes 08 and 11 from the property’s Duggan zone and holes 12, 13 and 14 from the North Lens zone are also encouraging, the companies report.

The Tyranite property encompasses the former Tyranite gold mine which produced about 31,000 oz gold (from 224,000 tons of ore at a recovered grade of 0.14 oz) from 1939 to 1942, the companies report.

According to the joint-venture, the South Lens deposit contains an estimated 526,000 tons (drillindicated) of ore grading 0.2 oz.

Tailings from previous mine operations are currently being processed by a separate joint venture involving Mill City and Tyranex Gold. Ongoing reprocessing of these tailings, which grade an average 0.03 oz, is expected to yield 4,400 oz.

Part of The Brown Group of Calgary, Gunnar and Mill City are gold exploration companies each with properties in Quebec, Ontario, N.W.T., Arizona, Colorado and Nevada.