Adventure Gold has announced that it has stopped drilling of the Deep Hole located in Meunier JV Property at the West Timmins Gold region. Lake Shore Gold, RT Minerals who are the JV partners for the company, have announced that the drilling was stopped due to technical issues in the depth of the hole.
The companies encountered a thick section of pyroxenite and other altered and deformed irregularities in the gold zone. Such irregularities included higher levels of tourmaline, pyrite and quartz veining. The drill hole was not able to reach the Thunder Creek Horizon target which was earlier identified to be encountered at a depth of 3,500 m.
Recent budget analysis carried out by the company suggested that it would not be financially beneficial to continue drilling any further, however, the casing and the setup of the Deep Hole will be retained in the event where future drilling is considered. RT Minerals and Lake Shore Gold are already in the process of implementing the second option of their agreement under which 250,000 RT Minerals shares will be delivered to Adventure Gold after the auditing process is completed. A total of $3,000,000 has already been spent on exploration by Lake Shore Gold and RT Minerals till now. After the transfer of shares, Adventure Gold will have 50% stake in the Meunier JV property with Lake Shore Gold owning 25% and RT Minerals owning the remaining 25%.
Source: http://www.adventure-gold.com