Parquet to raise $5 million to finance gold projects

Parquet Resources of Toronto will raise between $1.7 million and $5 million from a flow-though share issue to finance continuing work at the company’s gold properties in Val d’Or, Que. and Beardmore, Ont.

Under a recent agreement approved by Parquet shareholders, La Societe en Commandite Sofimines 1987 (“Sofimines 1987”) of Montreal will provide the financing.

Parquet says it is preparing to spend $3.5 million on the Courville property in Val d’Or where an induced polarization survey will be followed by 90,000 ft of diamond drilling.

That program will focus on extending four independent zones and several deep holes will be drilled on the Volcanic Granite contact zone which extends over 11,000 ft in a southeast-northwest direction across the property.

Discovery hole No PC-37 returned 7.5 ft of 0.186 oz gold per ton. Some of the other results from this zone include PC-62 which intersected 6.5 ft of 0.13 oz and 3.3 ft of 0.36 oz * Hole PC-64 returned 11.5 ft of 0.11 oz.

According to Parquet, the new H-Zone, corresponds to a silicified and pyritized shear zone 2,000 ft southwest of the southeast zone. It was intersected at depth in hole PC-38 which returned 11 ft of 0.11 oz, the company says. Parquet will test for continuity and depth extension around this hole.

An aggressive $1.5-million follow-up work program is under way at Parquet’s Holmwood gold property in Beardmore where three widely spaced holes returned values of 0.35 oz over 1.3 ft, 0.24 oz over 1.6 ft and 0.10 oz over 2 ft.

The company says line cutting has been completed and an induced polarization survey is being conducted. In addition, two drills are now in operation.