CAPE RAY, Newfoundland TERRA NOVA GOLD is making plans to drill another 2,500-3,000 m in the fall of 2003 on its Cape Ray gold project in the southwestern corner of the province. The program will examine three (Isle aux Morts, 04 deposit and Big Pond) of the four known gold deposits.
Gold mineralization at Isle aux Morts occurs in metal-rich quartz veins, as well as in pyritic sediments. The company carried out a limited drill program on the property in the fall of 2002. Most of the mineralization encountered is within 40 m of surface, making it easily accessible by open pit mining methods. Grades in the quartz veins range from 6.1 g/t Au over 10.4 m to 17.8 g/t Au over 6.8 m. When gold occurs in quartz veins and adjacent pyritic sediments, typical grades are 4.8 g/t Au over 14.6 m, 5.1 g/t Au over 6.6 m and 9.9 g/t Au over 11.0 m. The 2003 program will drill targets to the southwest and northeast of the known mineralization.
The 04 deposit was the site of drilling in June, when five of six holes encountered significant gold mineralization. Down-dip drilling in the 2003 program confirmed that the 04 deposit remains open at depth. This fall Terra Nova intends to carry out approximately 1,000 m of definition diamond drilling and to test for down-dip and down-plunge extensions of the known mineralization. Previous owners of the 04 deposit estimated it has a drill-indicated mineral inventory of 600,000 tonnes of 7.2 g/t Au to a depth of 300 m.
The Big Pond deposit consists of two parallel-plunging mineralized shoots within a more widespread mineralized system. Four holes in one of the shoots average 12.8 g/t Au over 2.3 m. Three holes in the other average 14.7 g/t Au over 1.3 m. The Big Pond shoots have been intersected with widely-spaced holes from 25-120 m below surface, are open at depth, and require infill drilling. There is also an intersection of 30.0 g/t Au over 0.2 m, which may be on the edge of a third parallel-plunging mineralized shoot.
The other mineralized area at Cape Ray is the 41 deposit with a drill-indicated mineral inventory of 100,000 tonnes at 8.2 g/t Au to a depth of 100 m. Terra Nova is modeling the deposit prior to selecting new drill targets.
Photos, video clips and diagrams of the Cape Ray project can be viewed at www.terranovagold.com.