Holmer Gold encouraged by Chevron results at Bristol

A strong drill hole has been completed by Chevron Canada Resources on the Bristol Twp., Ont., gold property held under option from Holmer Gold Mines.

Hole 2 intersected 25.3 ft grading 0.278 oz gold per ton. Another hole drilled underneath, cut 18.1 ft grading 0.24 oz. The first hole on the same section was shallow and failed to intersect economic mineralization.

Holmer, which has held the property since 1964, optioned the project to Chevron in 1987. The latter company can earn a 50% interest by spending $2.2 million on exploration. This year’s budget, which was set at $400,000 by Chevron, will be increased. Work in previous years has outlined drill-indicated reserves of 720,000 tons grading 0.12 oz.

The Chevron-funded program is designed to test for a down-plunge extension of the deposit. Also, drilling will test sections of the Bristol fault, which strikes for 8,000 ft across the property.

A $200,000 flow-through financing will fund exploration work on Holmer’s Quebec Chibougamau mine property. Located less than a kilometre west of the producing Cedar Bay mine in Quebec, the Chibougamau property was a copper producer in the 1960s. Holmer will focus on the property’s gold- bearing zones, which were ignored during the copper mining days.

Following a study of mine data, Holmer estimates the A zone hosts 99,250 tons grading 0.13 oz gold per ton and 1.63% copper. The C zone hosts 91,687 tons of similar grading gold and 0.17% copper. Another 62,726 tons grading 0.019 oz gold and 2.43% copper is located in the G zone.

Holmer is also exposed to a grass- roots exploration program in the Tashota, Ont., area. Exploration in the 1920s and 1940s outlined two geological environments with the potential for hosting gold and base metals. The company plans to examine both target areas this year.