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Junior Miner Reports Its Best Widths & Grades at Company's Owned Property
By: AllPennyStocks.com News
July 6, 2010
Now that the weather is much warmer – indeed, stifling hot in many parts of North America – the temperature has gone up on the search for gold. Prices for the shiny yellow metal may have taken a breather from their dizzy summer heights, but gold remains uppermost in the minds of many investors, and the list of those digging for gold continues to grow, and the places in which they’re looking.
Soon after the holiday weekend ended in July, Sudbury-based Merc International Minerals Inc. (TSX-Venture:MRK) reported results on seven additional drill holes from its winter drill program, completed in March, at its Damoti Lake Gold Project, in Canada’s Northwest Territories. All holes were collared within the eastern limb of the Red Mountain syncline, 125 metres west of the Horseshoe syncline and its associated high-grade gold mineralization.
Highlights of the program include a discovery which returned 16.12 grams gold per tonne (g/t) over 8.0 metres, including 60.25 grams g/t over 1.5 metres and 8.50 g/t over four metres, including 18.12 grams gold per tonne over 1.5 metres. Other holes also showed promise. These intersections, by the way, represent the best widths and grades ever reported for Red Mountain.
Drilling at Red Mountain was designed to test the continuity of new mineralization discovered by MRK last year and to expand these vertically stacked zones to the north and south.
MRK’s goal is to outline six to 10 million tonnes grading nine to 15 g/t gold along strike, in parallel structures and at depth, and advance Damoti Lake towards a three-million-ounce gold resource, making it comparable to other northern Canadian iron formation hosted gold mines/deposits.
In the fall of 2008, just as the first whiff of recession was filtering into the nostrils of North American investors, MRK acquired a 100% interest in Damoti Lake from Anaconda Mining Inc. for $250,000 and 1,250,000 Merc common shares. Already, it appears, it’s an investment that is paying dividends. Its summer drilling program from last year included 27 drill holes (5,600 metres), in which 96% of holes intersected gold mineralization.
The recent favourable news from Damoti Lake has not, however, set off greater fortunes for the company in terms of its stock price, and that could be good news for small-cap bargain sleuths seeking some gold exposure as the world economy again teeters. The price on July 6 jacked not much higher than 14 cents, perilously close to its 52-week low of 11.5 cents, plumbed the week before. The peak for the last year was 59 cents late last August. But with more of these results, things could change for the better for MRK.
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