KEY POINTS:
A New Zealand-based mineral exploration company, Underworld Resources, listed on the Toronto Stock Exchange, is hard at work discovering gold on a wooded peak in Canada.
In the mountains and deep valleys near the confluence of the White and Yukon rivers, Underworld Resources has announced promising assay results, Mineral News at Dawson City in the Yukon reported.
The results from its White Gold and Black Fox project in the Yukon Territory include 4.2g/tonne and 5.74g/tonne at different parts of the discovery.
Underworld Resources has completed the initial round of core drilling.
It has drilled a total of 1243m in 13 boreholes.
It reported the strike earlier this year, and said the initial gold discovery at the Golden Saddle prospect on the two properties extended "along strike and down-dip" for 180m.
Systematic soil sampling began at the Golden Saddle site in 2003 and a trench completed in 2007 by Underworld at Golden Saddle returned assays as high as 4.7g/tonne.
Adrian Fleming, the Dunedin-based president and chief executive of Underworld Resources, has said the White Gold and Black Fox properties comprised 7427ha, 95km south of Dawson City, and that Underworld had an option to earn a 100 per cent interest in the project.
The parent company, Underworld Resources based in Vancouver, is headed by Fleming, with four other directors from Vancouver.
Underworld Resources raised C$1.75 million ($2.35 million) in an initial public offering on the TSX Venture Exchange.
It has one wholly owned subsidiary - Underworld Resources (NZ) Ltd - which it registered in New Zealand in January 2006 to hold its mineral property interests.
- NZPA
