Toronto-based Kerr Mines has started a 6,000-metre drill program on its McGarry Deposit at Larder Lake in northeastern Ontario.
Cabo Drilling has been hired to carry out the advanced underground exploration program on the gold deposit, consisting of drilling and test mining.
The program will be using the 2,250-foot level of the McGarry Mine as a drill program to test exploration targets at depth, including former gold showings in the Armistice Mill zone, south of the mine.
In March 27 release, the company said “little exploration has been conducted outside the main mine trend, yet these areas are known hosts to numerous historical gold showings.”
Drill results will be announced at completion of the program and receipt of the final assays.
Kerr Mines also recently announced it has completed the first tranche of a proposed private placement of up to $5 million, consisting of 42 million common shares.
The company said it intends to close the second tranche of the offering as soon as possible. Proceeds are earmarked for general working capital purposes.
Kerr Mines also proposes to enter into debt agreements with its creditors to settle up an aggregate of $2 million of outstanding indebtedness owed by the company. The company will issue up to an aggregate of 40,000,000 common shares at a price of $0.05 per share.
