Junior Miner Intersects Up to 5.2g/t Gold Over 2.0 Metres in Quebec

By: AllPennyStocks.com News

October 29, 2009 10:55 AM
The most recent successes by Canadian-based junior mining companies indicate that, for all its stratospheric price highs, there is still plenty of gold to go around. One company, headquartered in Quebec, brought out news this week of its latest find in the gold fields of Quebec, straddling the border with northeastern Ontario, where the gold is particularly rich.

Hinterland Metals Inc. (TSX-Venture:HMI) announced in the last week of October that its efforts in hammering away at its Lockout project, about 100 kilometres east of Quevillon, Quebec have panned out in a big way. The company pointed out that drilling on seven holes tested geophysical targets and followed up positive drill results obtained by HMI two years ago. The drilling turned up with the company called “notable” gold values, with mineralization found along the upper and lower contacts of a graphitic unit within mafic volcanic rocks.

Highlights of the drilling in what’s called the “Panache Zone” of Lockout include gold intersections up to 5.2 grams of gold per tonne (g/t) over two metres, included in a zone of 1.7 g/t over seven metres. Intersections vary from 6.2 to 12.9 metres in width, and from 0.6 to 1.7g/t gold in grade. The most important outcome of the drill program is that it shows on-strike continuity of the gold-bearing structure up to one kilometre long.

Hinterland Metals, located in the Quebec centre of Val d’Or, in the hub of much of the gold mining activity in Canada, is focused on precious metal exploration in Quebec, Ontario and the Yukon. The company’s projects and hands-on exploration strategy offer what it says is “excellent potential for increasing share value and liquidity”.

HMI has also been active in going the acquisitions route, having in mid-October picked up a 100% interest in the four properties in the Kipawa area of southwestern Quebec, covering about 8,100 hectares of land. Kipawa has long been known for its Rare Earth Element, zircon and yttrium potential, but recent exploration in the area has been more focused on its uranium and gold potential, which should perk up interest among small cap investors with an eye to the junior mining sector.

The stock basked in the news the day the finds were announced, shooting up more than 7% to seven cents in one trading day on more than 415,000 shares. The improvement placed the price in the middle of a 52-week trading range that peaked last June at 10.5 cents, having hit bottom at a penny just before Christmas.

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