United Reef finds veins at Alder Gulch venture

Toronto-based United Reef Petroleums has outlined at least six major vein systems at its Alder Gulch joint venture project in Montana, the company said recently.

Under a recent agreement, Canhorn Mining is earning a 50% interest in the project by spending $1.35 million ($750,000 for exploration and $600,000 as a private placement). The Alder Gulch gold camp has produced around 2.6 million oz gold since 1860 and United Reef is planning to start a small-scale production program this year.

According to United Reef, the Big Vein in the Apex zone has been exposed by trenching for over 700 ft and is open along strike at both ends. An average grade of 0.176 oz gold per ton over a true average width of 20 ft with a strike length of 700 ft has been substantiated by a second series of deeper trenches, the company says.

A second vein system, the New zone, has been traced for over 3,000 ft with best values including 0.084 oz over 15 ft and 0.174 oz over 5 ft. A 700-ft section averaging 0.044 oz across a true width of 20 ft was also encountered, says United Reef.

The Atlas vein is exposed in old workings for a strike length of over 2,000 ft and shows a depth greater than 500 ft. Preliminary work on this vein encountered assays of 0.27 oz over 24 ft and 0.10 across 30 ft at the southernmost exposure. Large deposits

According to United Reef, there are a number of zones on the property which have the potential to host relatively large deposits grading in the 0.05 to 0.10 oz range across widths of 10 ft to 40 ft. “These zones should be amenable to open pit mining,” the company says.

Bench-scale tests are currently being conducted on the Big Vein ore to confirm the suitability of heap leaching. With 40,000 ft of diamond drilling planned this year, the company intends to start small- scale production in 1988.

In other news, United Reef says reconnaissance drilling is continuing at its Baird Twp. property near Red Lake, Ont., where reserves are estimated at 70,000 tons grading 0.20 oz gold to a depth of 150 ft.

United Reef says 5,500 ft of diamond drilling in nine holes uncovered a northwest striking broad zone of shearing and gold mineralization.

According to United Reef, the zone measures 3,000 ft long by 1,500 ft wide and encloses gold mineralization previously explored in the 1940s by Aiken-Russet Gold Mines.

On the main Baird group of 50 patented claims, seven anomalies have recently been drilled with eight holes. Roberts Lake

Hole 16 southwest of Roberts Lake intersected 1.5 ft grading 0.165 oz gold at a depth of between 274.5 ft and 276 ft., while hole 20 southeast of Roberts Lake encountered 6 ft of 0.104 oz at a depth of 218 ft to 224 ft and 3 ft of 0.220 oz at 230 ft to 233 ft.

The company says hole 21 intersected 4 ft of 0.156 oz while hole 23 encountered 4 ft of 0.141 oz, 3 ft of 0.256 oz and 4 ft of 0.156 oz from 312 ft to 394 ft.

United Reef also completed 6,000 ft of diamond drilling in the north east group of seven unpatented claims in 12 drill holes during 1987. “Seven of those holes tested several coincident vlf-Em and Maxmin II conductors contained within a zone of anomalously high resistivity,” says United Reef.

Hole 1 intersected 6 ft of 0.614 oz between 430 ft and 436 ft. Hole 2 cut 1 ft of 0.142 oz between 375 ft and 376 ft. Hole 10 encountered 14.5 ft grading 0.141 oz between 527.5 ft and 541 ft.

United Reef says 5,000 ft of diamond drilling is planned for this area during 1988.