Second drill rig working Freewest’s Benoit showing

A second drill rig has been mobilized by Freewest Resources (TSE) into the company’s 100% owned Lac Pusticamica property in Benoit Twp., Que., where a significant gold discovery was made earlier this month. The discovery hole cut separate intervals of 53 ft. grading 0.18 oz. and 20 ft. grading 0.23 oz. gold per ton and sparked a staking rush in the area (T.N.M., Feb. 11/91).

A second follow-up hole was drilled to overcut the first one and it intersected 162.5 ft. grading 0.15 oz. gold from 262.8 to 425.3 ft. The second hole’s wide intersection included 43 ft. grading 0.22 oz. and 38.6 ft. grading 0.19 oz. Results from a third hole (undercut), as well as two stepout holes drilled to the west of the discovery, are not yet available.

President Mackenzie Watson said exploration will continue with two machines until spring breakup renders working on the lake ice impossible. If necessary, a floating drill platform could be used for exploration during the summer months, he added.

Buoyed by the positive assay results, shares of Freewest have soared to a high of $4.50, up nearly 50% from the $3 level in early February. Freewest’s share price is also reflecting the company’s 40% stake in another promising gold project operated by Noranda in Holloway Twp., Ont. Three drills are turning on the Holloway joint venture where more good results are expected from stepout holes.

Meanwhile, several junior companies with claims in the Lac Pusticamica gold play have seen their share prices jump since the discovery was announced. For instance, Canaco Mining (ME), which owns claims situated along strike to the northeast of the Freewest property, have jumped to 48 from 8, while shares of Orient Resources (ME) have increased to 26 from 15. Equal partners Beaufield Resources (TSE) and Beauchamps Exploration (VSE) which own 50 claims adjacent to the Freewest property have seen their sh are prices move up to 15 and 27 respectively

The Beauchamps/Beaufield claims lie immediately north of the new discovery and extend northeast along a major fault adjacent to the Freewest ground. Although still at an early stage of exploration, the companies believe Lac Pusticamica will likely be the focus of heightened exploration efforts in the future.

The discovery has also generated a flurry of staking and property acquisition activity in the area around Benoit Twp. According to sources contacted by The Northern Miner, claim stakers are moving east from Benoit Twp. into the adjacent Le Lac and Nelligan twps., about halfway along the Senneterre to Chibougamau Highway.

Last week, Orient Resources and Consolidated Gold Hawk (ASE) granted Noranda (TSE) the right to earn a 50% interest in their jointly owned Nelligan Twp. property. The 60-claim property hosts a known gold discovery associated with a pyrite-bearing shear zone. Noranda can earn its interest in the Orient-Gold Hawk claims by spending $1 million on exploration and paying $180,000 over a 4-year period.

The Freewest discovery area is underlain by a northeast trending greenstone belt which is cut by granite intrusives and a number of crosscutting regional faults. The nearest significant gold deposit is owned by Bachelor Lake Gold Mines (TSE), about 16 miles to the north at Desmaraisville, Que.