Drilling Commences Mengold Resources Inc. has commenced a five-hole diamond drill program at its copper-zinc prospective Mountain River property located near Sainte-Anne-du-Lac, Que. The drill program will test coincident geochemical and geophysical anomalies that were identified in prior field programs.
In 2004, Mengold conducted a mobile metal ion geochemical survey and a time domain electromagnetic (TDEM) geophysical survey that defined coincident anomalies. The results of the TDEM survey indicated a close correspondence between the chargeability and electromagnetic conductivity anomalies over a strike length of 500 metres. The drilling will be conducted by Forages Mercier SA under the supervision of Mengold staff. The qualified person will be Maryse Robidas, who is a member of the Ordre des Geologues du Quebec.
In 2001, Ressources Maxima Inc. discovered a showing, near Sainte-Anne-du-Lac, containing copper, as well as molybdenum and tungsten in cal-silicates, opening the potential for the occurrence of skarn mineralization. Initially, Noranda and SOQUEM explored the area in a joint venture and each company retains a 1.0 per cent net smelter return on the property. On Dec. 31, 2003, Mengold entered into an agreement with Ressources Maxima to earn an undivided 70-per-cent interest in the property by making cash payments of $20,000; issuing 100,000 common shares; and incurring $400,000 of exploration expenditures, over a three-year period.
Mengold is currently completing the first of two financings. The company is proceeding to complete a private placement for a maximum of $860,000, subject to the approval of the TSX Venture Exchange, as reported in Stockwatch on April 13, 2006. The proceeds of the private placement will be used to conduct exploration programs on the company's Burchell Lake and Goldcreek properties, located in the Shebandowan area west of Thunder Bay, Ont., and for general working capital purposes. For additional details, refer to the company's news in Stockwatch of April 3, 2006, which outlines the acquisition of rights in these properties from Helm Exploration Ltd.