On behalf of Noranda Inc. (TSE), affiliate Hemlo Gold Mines (TSE) is continuing to look for a deep extension of the Page Williams ore zone on the International Interlake property at Hemlo, Ont.
Under an agreement with International Interlake (TSE), Noranda and Teck Corp. (VSE) can earn a combined 100% interest in the 31-claim property if they announce a production decision by March 31, 1989. Interlake retains a 40% net profits royalty.
However, Interlake President Georg Nickel said it is much too early to predict whether there is enough gold mineralization on the property to justify a production decision.
Back on July 13, Hemlo intersected 29.5 ft of grade 0.258 oz gold per ton in Hole No IL-6. The intersection which included 3.3 ft of 0.62 oz was located at a depth of 7,995.3 ft to 8,024.8 ft.
While Nickel was encouraged by the fact that the intersection was also encou ntered within Hemlo’s Golden Giant mine stratigraphy, subsequent results aren’t as good as he had hoped.
On Aug 31, Hemlo announced that a wedged drill hole intersected the targeted mineralized zone approximately 10 m east and 65 m up-dip from hole IL-6. According to Hemlo Gold, IL-6W intersected 22 ft of grade 0.08 oz from 7,909 to 7,931 ft down the hole from surface. IL-6W included 2.3 ft of 0.21 oz at the 7,911.3 level.
Hemlo Gold says another wedged drill hole from IL-6 has been started to intersect the target zone approximately 100 m below the mineralized zone located in hole IL-6.
About 200 m east of IL-6W, Hemlo is also testing for the presence of the mineralized zone at a depth of about 6,626 ft from surface. The company said it had completed 3 m before drilling was halted due to mechanical difficulties.
If Noranda fails to announce a production decision by March 31, Nickel said his company is in a position to revise some of the terms of the current agreement.
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